PSEi loses steam as US signals rate hike

The local stock barometer tumbled on Thursday as escalating US interest rate jitters spooked markets across the region.

The Philippine Stock Exchange index (PSEi) fell by 85.43 points, or 1.23 percent, to close at 6,887.92 as foreign investors heavily dumped local stocks. Indications that the US Federal Reserve may raise its targeted interest rate twice in 2023 curbed risk-taking across regional markets.

Some investors also believe that many local stocks had risen too fast and too soon in the last three weeks.

Local stock brokerage Papa Securities suggested the PSEi could be losing the momentum from its earlier rallies, adding that the 7,000 to 7,150 area would be tough to penetrate, especially with how “overbought” the PSEi had become based on technical readings.

“We continue to be of the view that while the index looks set to continue its push [higher into the] second half of 2021, dips would be our preferred level of entering to avoid being whipsawed by any sort of profit-taking,” the brokerage house said.

All counters ended in the red, led by the property counter, which lost 2.56 percent. The industrial counter lost 1.71 percent.

The financial, holding firm, services and mining/oil counters all lost less than 1 percent.

There were 129 decliners that outnumbered 76 advancers, while 41 stocks were unchanged.

Value turnover amounted to P14.18 billion. There was heavy net foreign selling amounting to P5.2 billion. —DORIS DUMLAO-ABADILLA