PSEi ends lower as investors take profit from six-day rally

The local stock barometer ended a six-day winning streak Wednesday as investors pocketed recent gains and chose caution ahead of US President-elect Donald Trump’s potential policy pronouncements.

The Philippine Stock Exchange index (PSEi) lost 42.53 points or 0.58 percent to close at 7,321.82, bucking the upswing in most regional markets.

At the local bourse, investors locked up gains from the strong rally since the start of the year. Others took their cue from the sluggish trading on Wall Street overnight.

Sellers were mostly local investors. Foreign investors took advantage of the decline by picking up stocks, bringing in P456 million in net foreign inflows. There has been net foreign buying at the local stock market for the ninth straight trading session.

“Investors will focus on US President-elect Trump’s media interaction, comments from (US Federal Reserve) Fed Chair (Janet) Yellen, equity earnings, China price action and data,” Citigroup said in a research note.

“Investors will closely watch for cues on policy priorities and potential trajectory of the incoming government,” Citi said.

Trump was scheduled to hold a media briefing last night (Manila time). The incoming US President had talked about bringing back jobs to America during his campaign.  In the Philippines, this has caused concern on the business process outsourcing (BPO) industry, which generates more than $22 billion in annual revenues.

Citi said the comments of US Fed’s Yellen would also be closely watched.

At the local market, the PSEi was led lower by the financial, holding firm, services and property counters. On the other hand, the industrial and mining/oil counters modestly gained.

Total value turnover for the day amounted to P7.15 billion. There were 99 decliners that outnumbered 88 advancers while 52 stocks were unchanged.