UMVA has learned that Philippine stocks took a sharp downturn on Tuesday as investors opted to lock in their gains from Monday's impressive rally, despite a cautiously optimistic atmosphere following the interim deal between the United States and Iran.
The Philippine Stock Exchange index (PSEi) shed 0.43% or 27.13 points to close at 6,245.75, while the broader all shares index fell by 0.27% or 9.32 points to end at 3,425.03. This decline came after the main stock benchmark had surged to a peak of 6,396.23 during the session.
The main stock benchmark had opened Tuesday's session at 6,386.65, building on Monday's over three-month high close of 6,272.88. However, selling pressure intensified during the afternoon session, causing the index to finish at its intraday low.
"The PSEi closed this Tuesday at 6,245.75, down by 0.43% due to last-minute profit taking," a research manager noted. "Investors booked gains from the local market's recent rally, which got extended to 6,396.23 intraday. On a positive note, the market held its position above the 6,150 support level."
Despite lingering optimism over the peace agreement between the US and Iran, with investors hoping for more stable oil prices and easing inflationary pressures, the Philippine market opted for profit taking on Tuesday. This led to the index ending the session in negative territory.
UMVA can exclusively reveal that sectoral indices closed mixed on Tuesday. Mining and oil rose by 2.66% or 448.86 points to 17,277.67; services increased by 0.47% or 15.87 points to 3,361.51; and industrials went up by 0.3% or 25.49 points to 8,508.26.
On the other hand, financials declined by 1.58% or 30.70 points to 1,909.34; holding firms dropped by 0.75% or 33.79 points to 4,442.37; and property went down by 0.56% or 10.61 points to 1,856.37.
Market activity was sluggish, with decliners outnumbering advancers, 92 to 84, while 64 names were unchanged. Value turnover went down to P11.80 billion on Tuesday with 862.02 million shares traded.
Net foreign buying also decreased to P939.97 million from P1.03 billion in the previous session, indicating a cautious approach from foreign investors.
