PH stocks slip on US rate jitters
THE LOCAL stock barometer slipped for a fourth session in row on Tuesday as fresh US interest rate jitters spooked regional markets.
Reversing its modest morning gain, the Philippine Stock Exchange index lost 29.09 points or 0.38 percent to close at 7,580.22.
The most battered sector was the interest rate-sensitive property counter, which tumbled by 1.24 percent. The industrial, holding firms and services firms likewise weakened.
On the other hand, the financial and mining/oil counters were unscathed, both rising by over 1 percent.
In a research note, Citigroup said with more than seven weeks to go to the December US Fed policy meeting, US Federal Fund futures markets now assigned a 75 percent probability of a rate hike by December. In a research note on Tuesday, Citi noted that stronger-than-expected October flash PMI (purchasing managers’ index, a key manufacturing indicator) readings from Europe and US helped renew the selloff in global fixed income markets, and offered another boost to the dollar.
“Renewed fear of higher global rates and a stronger dollar may weigh on sentiment towards emerging markets,” it said.
Total value turnover for the day was thin at P6.54 billion. Despite the PSEi’s decline, market breadth was positive as there were 97 advancers which outnumbered 82 decliners while 49 stocks were unchanged. This suggested selective buying that focused away from pricey large-cap stocks.
Foreign investors remained net sellers to the tune of P324 million.
Investors dumped shares of SM Prime, which fell by 2.79 percent while PLDT, AEV, JG Summit, Jollibee and Megaworld tumbled by over 1 percent.
ALI, URC, GTCAP and Security Bank also declined.
On the other hand, Metrobank and BDO both rose by over 2 percent while MPI, AC, BPI and SMIC all firmed up.
Among the notable gainers outside the PSEi is gaming firm Bloomberry, which surged by 4.27 percent. The gaming industry is seen to reap the rewards of Pres. Duterte’s recent state visit to China. Melco Crown also advanced by 4.19 percent.
China and the Philippines rekindled bilateral ties after a five-year diplomatic chill, spiced up by an agreement to return to the bilateral discussions to address maritime dispute. Chinese president Xi Jinping agreed to lift travel advisories issued a few years ago to Chinese citizens traveling to the
Philippines, a deal seen to encourage more Chinese citizens to travel in the Philippines.
