PSEi slumps on US, China news

MANILA, Philippines–The local stock barometer pulled back from record highs on Tuesday as disappointing economic data out of the United States and China weighed down regional sentiment.

The Philippine Stock Exchange index (PSEi) lost 59.2 points or 0.77 percent to close at 7,630.71.

Across the region, most markets slumped in line with the overnight decline in Wall Street following reports that the US economy had grown by only 2.6 percent in the fourth quarter of 2014 compared to 5 percent in the previous quarter.  Regional markets also worried over a weak manufacturing gauge in China.

Value turnover for the day amounted to P10.48 billion. There were 76 advancers, which were edged out by 111 decliners, while 36 stocks were unchanged.

The day’s decline was led by Bloomberry, which fell 3.55 percent, while GTCAP, Jollibee, BDO and SMIC all declined by more than 2 percent. Metrobank, Megaworld, ICTSI and AC all lost more than 1 percent.

The day’s most actively traded stock was URC, which was down 0.48 percent, while PLDT, JG Summit, ALI and EDC also slumped.

Among the few large-cap stocks that were unscathed were AGI (+1.8 percent) and SM Prime (+0.54 percent).

Local stock brokerage Regina Capital Development Corp. said pullbacks were expected this week but these would be a buying opportunity to allow the index to form a higher base.

“Based on current volatility readings, it is possible for the index to reach 7,790 target price this week but seeing the lack of pullbacks (bear scenario), this may not be sustained and could cause sharp corrections,” the brokerage said.

In the month of January alone, the PSEi gained 6.4 percent. —Doris C. Dumlao