PHILIPPINE STOCKS dropped on Thursday as the market succumbed to profit taking following its three-day rally and amid political uncertainty after the House of Representatives impeached Vice-President Sara Duterte-Carpio.
The benchmark Philippine Stock Exchange index (PSEi) declined by 0.62% or 39.11 points to end at 6,241.97 on Thursday, while the broader all shares index slipped by 0.26% or 9.61 points to 3,687.05.
“The local market pulled back as investors took profits from its preceding three-day rally,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.
“The PSEi corrected slightly lower, considered healthy profit-taking, after some political noise lately amid the impeachment of Vice-President Duterte by the House of Representatives that could potentially distract lawmakers from passing reform measures,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
Ms. Duterte, the daughter of former President Rodrigo R. Duterte, was impeached by the House after 215 congressmen signed the impeachment complaint, exceeding the one-third legal requirement before it can be sent to the Senate.
The House cited Ms. Duterte’s alleged abuse of power and constitutional violations stemming from her use of confidential funds as reasons behind her impeachment.
“Philippine investors finally took some profit after several days of rallying from the local market as many continue to assess the latest consumer price index report and the latest geopolitical movements abroad,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan added in a Viber message.
The benign January inflation print of 2.9%, steady from the December 2024 level, “strengthens the case for future monetary easing, supporting a more favorable outlook for equities,” Mr. Limlingan said.
Most sectoral indices closed lower on Thursday. Property declined by 1.24% or 29.93 points to 2,375.89; financials went down by 0.82% or 19.10 points to 2,285.78; services retreated by 0.5% or 10.32 points to 2,048.84; and holding firms dropped by 0.22% or 11.82 points to 5,204.80.
Meanwhile, industrials rose by 0.51% or 44.18 points to 8,711.24 and mining and oil went up by 0.22% or 16.60 points to 7,344.86.
“Bloomberry Resorts Corp. was the day’s index leader, jumping 7.61% to P4.10. Ayala Land, Inc. was at the tail end, falling 2.12% to P25.35,” Mr. Tantiangco said.
Value turnover dropped to P5.13 billion on Thursday with 622.78 million shares changing hands from the P7.50 billion with 673.73 million issues traded on Wednesday.
Advancers outnumbered decliners, 91 versus 85, while 60 names were unchanged.
Net foreign buying went down to P178.25 million on Thursday from P324.94 million on Wednesday. — Revin Mikhael D. Ochave