PSEi rally halted by profit taking

 The local stock market succumbed to profit-taking after its strong bounce that started last week.

The main index fell 92.69 points or 1.44 percent to close at 6,352.32 as the Industrial sector led all indices in the retreat. Volume dipped to 708 million shares worth P4.69 billion as losers outpaced gainers 103 to 68 with 51 unchanged.

“Traders cashed in the Philippine market after successive sessions in the green following the release of the FOMC’s June meeting minutes,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He noted that, “Fed officials reiterated a tough stance against inflation, saying another 50-bp or 75-bp move would ‘likely be appropriate’ at the July 26-27 meeting.”

Philstocks Financial Senior Supervisor for Research Japhet Tantiangco said “The local bourse closed lower as investors took profits from its preceding 4-day rally.”

He added that, “The Peso’s depreciation to the 56.00 per US dollar level, and concerns over a possible aggressive monetary tightening of the Bangko Sentral ng Pilipinas to temper inflation and support the local currency fueled the negative sentiment.”