Stocks defy regional rally

The local stock barometer fell below the 8,000 mark on Wednesday, bucking the upswing across regional markets.

The main-share Philippine Stock Exchange index (PSEi) fell by 89.68 points, or 1.12 percent, to close at 7,920.24, weakening for the fourth straight session. Elsewhere in the region, trading was mostly upbeat due to fresh optimism on the US-China trade talks.

Local stockbrokerage Papa Securities said the market topped out at the 8,100 to 8,150 levels and was thus looking for a “healthy pullback” toward 7,800-7,850 in the near term.

“MSCI rebalancing is a likely catalyst for the correction,” the brokerage said, referring to the recent MSCI review that cut the weights of some of the local blue chips.

At the local market, the PSEi was weighed down most by the financial, holding firm, services and property counters, which all fell by more than 1 percent. The industrial counter also slipped. On the other hand, the mining/oil counter slightly firmed.

Value turnover for the day amounted to P7.27 billion. There were 134 decliners that edged out 75 advancers, while 50 stocks were unchanged. —DORIS DUMLAO-ABADILLA

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