PSEi falls to 7,100 level

The local stock barometer fell to the 7,100 level on Thursday as investors braced for a potential interest rate increase by the US Federal Reserve (Fed) by yearend.

Declining for the second straight session, the Philippine Stock Exchange index (PSEi) shed 78.57 points or 1.09 percent to close at 7,122.45. Elsewhere in the region, trading sentiment was mixed especially as China’s stock market was seen entering bull territory after the meltdown seen in recent months.

As US Fed Chair Janet Yellen confirmed that the liftoff was a “live possibility” at the Federal Open Market Committee (FOMC) meeting in December, Citigroup noted in a research note that the US dollar had strengthened against every major G10 and emerging market currency.

“With six weeks still to go to the December FOMC, we question whether markets are likely to price in more aggressive probability for Fed liftoff, or if instead expectations may be nearing a peak,” Citigroup said.

At the local market, the decline was led by services, which fell 2.72 percent, while holding firms and property counters tumbled by more than 1 percent.

Value turnover for the day amounted to P6.52 billion. There were 124 decliners, which overwhelmed 48 advancers, while 44 stocks were unchanged.

Bloomberry slid by 6.77 percent while PLDT, Megaworld and SM Prime all faltered by more than 3 percent. SMIC fell by 2 percent while BDO, ICTSI and Globe lost more than 1 percent. URC, ALI, AC, Metrobank, RLC, Meralco and AEV all declined.  Doris Dumlao-Abadilla