Stocks slump on renewed US rate hike jitters

The local stock barometer returned to the doldrums yesterday, tracking an overnight Wall Street slump arising from US interest rate jitters.

The main-share Philippine Stock Exchange index (PSEi) shed 37.78 points or 0.48 percent to close at 7,790.70. All counters ended in the red led by the industrial counter which fell by 1.06 percent. Value turnover for the day amounted to P8.6 billion. Market breadth was negative, with 45 advancers eclipsed by 130 decliners while 47 stocks were unchanged.

EDC led the PSEi decliners, falling 4.37 percent on rumors that BacMan geothermal plant was again facing some operational issues. FGEN was likewise down 2.29 percent.

Bloomberry and SM Prime both lost more than 2 percent. JG Summit and MPI also fell 1 percent. Metrobank, SMIC, BDO, GTCAP and Megaworld also contributed to the decline.

Outside of the PSEi, there was profit-taking on D&L (-3.61 percent) and FNI (-2.6 percent), the day’s most actively traded stock.

On the other hand, AGI bucked the downturn, rising 2.02 percent while ALI, AC and DMCI also firmed up.

Local stockbrokerage DA Market Securities noted that investors were turning more cautious, taking profit on stocks that were fairly valued while seeking more attractive values in the market as earnings results trickle in. It noted that the market was indicating a bias toward possible consolidation or correction.

Overnight, the closely tracked Dow Jones industrial index tumbled 332.78 points on rising concerns that the US Federal Reserve might start raising interest rates earlier than expected. The bloodbath in Wall Street also tempered risk-taking in regional markets. Doris Dumlao