The local stock barometer remained in the doldrums for the third straight trading session Tuesday as investors pared down their exposure to emerging markets following Donald Trump’s rise to the US presidency.
Giving up early gains, the main-share Philippine Stock Exchange index (PSEi) shed 14.33 points or 0.21 percent to close at 6,857.15, tracking mostly sluggish regional markets.
One notable decliner among PSEi stocks was Jollibee, which slid by 9.96 percent. Jollibee reported Tuesday a 6.1-percent year-on-year growth in third-quarter net profit to P1.33 billion while nine-month net profit rose by 13.8 percent to P4.39 billion. Considering that the reported results were not bad, stock pundits said the selldown on Jollibee might be due to speculation of a reduction in its weight in the closely tracked MSCI.
Overall, the market was weighed down most by the industrial counter, which fell by 1.51 percent, while holding firms and services counters traded lower.
The financial, mining/oil and property counters gained slightly.
Citigroup said comments from a US Federal Reserve official remained supportive of market expectations for a Fed rate increase by the end of this year, noting that Fed fund futures suggested an 80-percent chance of it happening next month.
“Outlook for EM (emerging market) assets remains challenging. Investor concerns over tightening of global financial conditions and fear of capital withdrawals amid heightened uncertainty are likely to persist. EM currencies and fixed income are likely to remain under pressure. The extent of positioning is likely to determine the pace of adjustment in the short term,” Citi said in a research note.