Stocks continue to weaken

The local stock barometer slumped for the second straight session Friday as investors locked up gains and priced in foreign exchange risks as the US Federal Reserve starts tapering its easy-money policy.

The Philippine Stock Exchange index (PSEi) shed 87.99 points or 1.49 percent to close at 5,835.13.

Stock markets were mostly higher across the region as investors digested the impact of a modest tapering of the US Fed’s monthly bond-buying operations. The exception were Chinese stocks, which faltered on concerns over a fresh cash crunch.

For the week, the main index was still up by 68 points or 1.2 percent from Friday’s finish of 5,767.13.

At the local market, all counters were in the red but the worst hit were the financial, industrial, services and property counters, which all slid by more than 1 percent.

“Tapering hangover is making the market lose points,” said local stock brokerage Regina Capital.

Value turnover amounted to P7.6 billion. Market breadth was negative, with 51 advancers being edged out by 91 decliners while 42 stocks were unchanged.

Dealers said that in the past two days, investors were pocketing gains from a four-day run-up.  Doris C. Dumlao