PSEi falters on US rate hike fears

The local stock barometer slipped from record highs on Monday as regional jitters on US interest rates added to profit-taking pressures.

The Philippine Stock Exchange index (PSEi) lost 41.04 points or 0.52 percent to close at 7,820.29. Elsewhere in the region, trading was sluggish as investors feared that stronger-than-expected US jobs data might prompt the US Federal Reserve to raise interest rates sooner than originally expected by the market.

The decline was led by the property and mining/oil counters, which both fell more than 1 percent. The industrial, holding firm and services counters ended slightly lower. On the other hand, the financial sub-index posted a modest gain.

Value turnover for the day amounted to P8.33 billion. Market breadth was negative, with 69 advancers overwhelmed by 112 decliners while 47 stocks were unchanged.

The PSEi was weighed down most by Bloomberry (-3.08 percent) and MPIC (-2.08 percent). Manila Water, although not part of the PSEi, slumped 3.77 percent as the market braced for an unfavorable arbitration ruling on water tariffs. MPIC, which has Maynilad Water in its portfolio, is likewise reeling from a delay in regulators’ implementation of tariff increases despite a favorable arbitration ruling. Maynilad and MWC have brought to separate arbitration panels their water tariff dispute with regulators. Doris C. Dumlao