MANILA, 9 December — The recovery of the Philippine market was apparently too good to last because market players started taking profits on past purchases. However, stock trading still managed a slight increase which showed the Manila bourse really on the mend.
Despite the profit-taking on the floor, the market barometer managed to move up one step or 0.15 percent to 1,130.20 points. Value turnover edged up 19 percent to 2.75 billion pesos ($52.88 million) while volume turnover rose almost 32 percent to 5.77 billion shares.
Shares took a breather at the start of the trading week and closed lower after a three-day rally but quickly made up for it in the coming days.
Traders said players were optimistic the market would retain a positive tone for the rest of the year, thanks mainly to year-end window-dressing which they said should take the index around 10 percent higher from current levels.
"I think it’s a healthy correction. It’s gone up by almost 10 percent (in one month) so it’s proper. It gives a semblance of support for the rally that is being expected this month," said Oliver Plana, an analyst at Asiasec Equities Inc.
"Charts and indications show the market would close (the year) up by another 10 percent from where we are now."
Plana said sellers may be mostly those who accumulated stocks when the market was below 1,000 points around October and were cashing in gains.
Investors were heartened midweek when the Philippine government released positive inflation data.
Equitable PCI Trust fund manager Edison Yap said a surge of buying interest from local funds lifted the market.
"The funds may see interest rates, government treasuries yields so low they are channeling some money into local stocks... treasuries don’t look as attractive (as equities investments) now," Yap said.
