PSEi slips as investors lock in gains after rally

MANILA, Philippines – Local stocks retreated on Tuesday as investors took profits following the market’s recent surge, although foreign buying helped cushion the decline.

The benchmark Philippine Stock Exchange Index (PSEi) fell 0.43 percent, or 27.13 points, to close at 6,245.75.

READ: Peso, stocks rally on Middle East deal

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Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the PSEi’s close remained its highest in more than three months, or since March 6, and was still well above its four-month low reached on Jan. 29.

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According to Philstocks Financial research manager Japhet Tantiangco, last-minute profit-taking dragged the market lower after the index climbed as high as 6,396.23 during intraday trading.

Investors opted to book gains from the market’s recent rally, which had pushed the benchmark to its strongest levels in months.

Despite the pullback, Tantiangco said the local bourse managed to stay above the 6,150 support level, a sign that the market’s underlying strength remains intact.

Luis Limlingan, head of sales at Regina Capital Development Corp., also said the Philippine market opted for profit-taking despite lingering optimism over the reported peace agreement between the United States and Iran, with investors hoping for more stable oil prices and easing inflationary pressures.

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Robust activity

Trading activity stayed robust, with net value turnover reaching P7.73 billion. Foreign investors also continued to support the market, ending the session as net buyers with inflows amounting to P939.97 million.

Sectoral performance was mixed.

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Mining and oil stocks led the gains, advancing 2.67 percent. Banking counters, meanwhile, posted the steepest decline, shedding 1.58 percent.

Among index members, Century Pacific Food Inc. emerged as the top performer after rising 4.35 percent to P30 per share.

AREIT Inc. was the biggest laggard, dropping 5.45 percent to P36.40 apiece.

Analysts said the decline came after a strong run-up in local equities, with investors appearing to pause and secure profits while assessing whether the market can sustain its recent momentum.

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Still, continued foreign inflows and the PSEi’s ability to hold above key support levels suggested that investor sentiment remained broadly constructive despite the day’s retreat. /pai INQ