US rate watch pulls down PSEi

The local stock barometer tumbled below the 7,000 mark on Thursday as investors braced for the likelihood that the much-ballyhooed US interest rate lift-off will happen this month.

The Philippine Stock Exchange index (PSEi) lost 52.98 points or 0.75 percent to close at 6,994.10.  Stock markets elsewhere in the region likewise weakened as US Fed chair Janet Yellen signaled the US monetary authority was on track to raise interest rates this year.

Luis Gerardo Limlingan, managing director at Regina Capital, said most local stocks traded lower after Yellen reaffirmed the possibility of the December rate hike.

“US dollar advanced on her comments. Data continued to show strength in the US job market,” Limlingan said.

“Investors were also awaiting the decision from the ECB (European Central Bank) later regarding its stimulus plan,” he said.

All counters ended in the red but the biggest decline came from the industrial sub-index, which lost 1.22 percent.

Value turnover at the local market stood at P6.37 billion.  There were 61 advancers, which were edged out by 94 decliners. Meanwhile, 52 stocks were unchanged.

Investors dumped shares of URC, which fell by 3.11 percent, while ICTSI slumped by 2.33 percent.

RLC, BDO, AP, Globe and AC all slipped by over 1 percent while SMIC, ALI, Jollibee, Metro Pacific, Metrobank, BPI, SM Prime and GT Capital also dipped.

Outside of PSEi stocks, Security Bank also fell by 2.14 percent.

On the other hand, PLDT bucked the day’s downturn, gaining 0.65 percent.

RCBC (+1.86 percent) and Cirtek Holdings (+5.9 percent) also defied the downturn and were heavily traded at the market. Doris Dumlao-Abadilla

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