PSEi falls below 6,500

Local stocks ended a four-day rebound Tuesday, bringing the main index below 6,500, as regional markets weighed global growth prospects.

The main-share Philippine Stock Exchange index shed 78.44 points or 1.2 percent to close at 6,448.18. All counters were in the red but the biggest decline was posted by the industrial (-2 percent) sub-index.

There were 71 advancers, which were edged out by 77 decliners, while 50 stocks were unchanged. Value turnover amounted to P8.2 billion.

With the prospects of the US Federal Reserve tapering its quantitative easing or liquidity-inducing bond buyback activities, investors are turning more cautious and selective in loading up on equities.

The biggest index laggers were Energy Development Corp. (-6.67 percent), Jollibee (-5.31 percent) and Universal Robina Corp. (-4.1 percent).  Semirara, Megaworld, PLDT and Ayala Land also fell more than 3 percent. Globe, Ayala Corp. and Aboitiz Power also weighed down the index.

DA Market Securities said in its daily research that if the local market would fail to hold above 6,529, the index might pull back to major support levels at 6,259 and 6,188.

“Ahead, there may be more volatility as the market seeks to establish a base of support,” it said.

The day’s losses were tempered by the gains made by Petron (+3.05 percent), DM Consunji Inc. (+2.63 percent) and Philex Mining (+2.16 percent). Other index gainers were Manila Water Corp., SM Prime,Bloomberry, Metro Pacific Investments Corp., International Container Terminal Services Inc., SM Investments Corp. and First Gen. Doris C. Dumlao