Stocks drop as jitters spark profit-taking

By Krista Angela M. Montealegre, National Correspondent

LOCAL stocks ended a four-session winning streak, but stayed above the 8,000 level at the close of the week, after a terror attack in Spain and concerns over the unraveling of US President Donald J. Trump’s administration triggered profit-taking ahead of the start of the ghost month.

The benchmark Philippine Stock Exchange index (PSEi) tumbled 56.02 points or 0.69% to 8,016.73 on Friday, ending a rally that sent the bellwether index within 54 points of its record-high finish of 8,127.48 recorded on April 10, 2015.

The all-shares index dropped 26.05 points or 0.54% to settle at 4,734.84.

“The stock market got affected by what happened in Wall Street last night. Resistance was met at 8,100 so some people took some money off the table,” Miko A. Sayo, trader at AP Securities, said in a phone interview on Friday.

“Jitters are now coming from receding expectations that (Mr.) Trump will push through with his agenda of tax cuts and infrastructure spending, and heightened fears in Barcelona,” Edgar V. Lay, junior equity analyst at AB Capital Securities, Inc., said in a separate interview.

US stocks fell the most in three months on Thursday on growing concerns about Mr. Trump’s deteriorating administration, the latest blow caused by reports that National Economic Council Director Gary Cohn had resigned, which the White House had denied.

Terror fears are adding to investors’ concerns after at least 13 people were killed when a van swerved into pedestrians in Barcelona.

Most of the subindices finished in negative territory, with property declining 37.42 points or 0.97% to 3,789.38.

Holdings firms shed 75.95 points or 0.96% to 7,831.42; mining and oil slid 105.80 points or 0.82% to 12,759.15; services dropped 6.25 points or 0.36% to 1,705.39; and financials lost 5.67 points or 0.28% to 2,006.80.

Industrial was the lone counter in the green, squeezing out a gain of 6.26 points or 0.05% to 11,065.96.

Value turnover eased to P5.39 billion after 1.36 billion shares changed hands, from P6.31 billion on Thursday.

Decliners dominated advancers, 107 to 74, while 58 issues were unchanged.

Foreign investors remained in buying territory for the ninth straight trading day with net purchases of P64.5 billion, albeit lower than the P352.81 million in the previous session.

“The ghost month will start when investors return on Tuesday. We can expect less trading volume than normal since there are no more catalyst the market,” AB Capital’s Mr. Lay said.

The local market will be closed on Monday for a national holiday that commemorates the assassination of former Senator Benigno “Ninoy” Aquino, Jr.