Stock index snaps three-day winning streak, slips below 7,300

The local stock barometer slipped below the 7,300 mark as investors weighed prospects of an increase in the US interest rate later this month alongside geopolitical risks.

The main-share Philippine Stock Exchange index gave up 19.35 points or 0.27 percent to close at 7,294.52, ending a three-day upswing.

“Philippine markets ended in the red as US stocks closed with modest losses due to a touch of risk aversion driven by North Korean geopolitical concerns, Deutsche Bank’s massive cash call, rising rate expectations and the implications of China’s underwhelming 2017 growth target,” said Luis Gerardo Limlingan, managing director at Regina Capital Development.

He said investors were likewise monitoring Europe, particularly the political developments in France.

At the local market, total value turnover for the day amounted to P8.38 billion.  Mostly local investors sold down stocks as the main index hovered above 7,300.  On the other hand, there was a modest P171 million in net foreign buying for the day.

At the local market, the PSEi was weighed down most by the interest rate-sensitive property counter, which slipped by 1.08 percent ahead of a widely anticipated US Federal Reserve interest rate hike later this month.

The industrial, holding firm and mining/oil counters were also sluggish.

On the other hand, the financial counter rose by 1.13 percent while the services index was a tad higher.  When interest rates go up, banks tend to benefit from improved margins.

There were 109 decliners that outnumbered 82 advancers while 40 stocks were unchanged.