PSEi slips below key support level

MANILA  -The Philippine benchmark index (PSEi) tumbled below a major support zone as investors turned jittery following the extended weekend, and after China’s central bank cut its key interest rate to prop up its economy.

The PSEi sank 1.24 percent, or 77.88 points, to 6,212.39—below the support area of 6,250.

The broader All Shares index was also down 0.90 percent, or 30.46 points, to 3,352.95.

This adds to losses from the past week after the PSEi dropped to an annual low of 6,290.27 on Friday.

Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., said sentiments remain poor as investors were concerned that interest rates would remain elevated for a longer period of time. Financials (+0.45 percent) was the sole gainer on Tuesday while holding firms (-2.16 percent) and services (-1.96 percent) saw the biggest declines.

A total of 391.7 million shares valued at P4.8 billion changed hands while foreigners were net sellers to the tune of P264.81 million, data from the stock exchange showed.

BDO Unibank Inc. was the most actively traded stock with a gain of 0.58 percent to P139 per share. It was followed by Bank of the Philippine Islands, up 1.62 percent to P112.90; SM Prime Holdings Inc., up 2 percent to P30.60; Universal Robina Corp., down 3.57 percent to P113.40; and Ayala Land Inc., down 4.07 percent to P28.30 per share.

Ayala Corp. was down 0.85 percent to P585; JG Summit Holdings Inc., declined by 4.60 percent to P36.30; and SM Investments Corp., was lower by 3.55 percent to end the session at P829.50.

—Miguel R. Camus INQ