PSEi retreats as investors digest gloomy US outlook

The local stock barometer ended the week on a sluggish note after earlier hitting a barrier at the 6,000 level.

Bucking mostly firmer regional markets, the main-share Philippine Stock Exchange index (PSEi) shed 34.62 points or 0.58 percent to close on Friday at 5,908.90 as foreign investors continued to trim their local stock holdings.

“Local shares closed lower as investors digested Federal Reserve [chair] Jerome Powell’s dour economic outlook along with lackluster US economic data,” said Luis Gerardo Limlingan, managing director at Regina Capital Development.

Limlingan noted the Financial Times Stock Exchange (FTSE) rebalancing also became a key focus for the day. The FTSE is used by fund managers as a proxy for the UK market.

Changes arising from this FTSE review will be implemented at the close of business on Friday, Sept. 18, and will take effect at the start of trading on Monday, Sept. 21.

The market was dragged down by the holding firm and property counters, which both fell by over 1 percent. The industrial counter also slipped.

The financial, services and mining/oil counters all slightly firmed up.

Value turnover for the day hit P7.64 billion. Net foreign selling totaled P892.27 million.

Market breadth was neutral. There were 94 advancers, just as many as the decliners, while 46 stocks were unchanged.

The PSEi was weighed down most by index heavyweight SM Investments, which fell by 3.65 percent and was the most actively traded company. Its property arm SM Prime also fell by 1.58 percent.URC also declined by 2.19 percent, while Puregold lost nearly 2 percent.

Ayala Land shed 1.27 percent, while PLDT and BPI dipped by less than 1 percent.

Metrobank, Meralco, AGI and Globe Telecom all added over 2 percent.

BDO, Megaworld, Security Bank and GT Capital all rose by over 1 percent. —DORIS DUMLAO-ABADILLA

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