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Philippine shares plunge as investors cash in on 6-day gains

Philippine shares plunge as investors cash in on 6-day gains

Philippine shares plunged Friday as investors locked in profits from a six-day rally that propelled the market to its highest in nearly 10 years.
The 30-company Philippine Stock Exchange Index fell 3.4 percent, or 112.37 points, to 3,162.82, after gaining 7.7 percent in the last six sessions.
Leading the market's retreat, Philippine Long Distance Telephone Co., the country's largest telecommunications group, surrendered 5.9 percent to 2,630 pesos, after its American depositary receipts tumbled 2.1 percent in New York overnight.
Friday's fall, easily the largest single-day point loss in nearly a decade, however, was welcomed by analysts.
"We were expecting this," said Luz Lorenzo, economist and market strategist at ATR-Kim Eng Securities. "It (market's rise) came a little too fast too soon."
Decliners led advancers 89 to 32, while 43 stocks were unchanged.
Other losers were blue chips Metropolitan Bank and Trust Co., down 5 percent to 57 pesos, SM Investments Corp., off 5.1 percent at 370 pesos, and Ayala Corp., lower by 2.4 percent at 610 pesos.
Among the few gainers that helped cushion the market's fall was Petron Corp. The oil refiner rose 2.4 percent at 420 pesos on the company's plan to expand its export market for lubricants and other products to China and Vietnam.
Even after the market's sharp fall, analysts said the outlook remains bullish over prospects of robust economic and corporate earnings growth, excess liquidity and record-low domestic interest rates.
The peso weakened against the U.S. dollar Friday on strong trading. The dollar ended at 49.090 pesos, up from 48.95 Thursday.


Updated : 2021-01-16 11:23 GMT+08:00