PSEi slumps to 7,200 level

Local stocks saw a bloodbath Friday that dragged the main index to the 7,200 level as investors weighed the US Federal Reserve’s hawkish clues and presumptive President-elect Rodrigo Duterte’s choice of Cabinet members.

Sliding for the second straight session, the Philippine Stock Exchange index (PSEi) gave up 128.3 points or 1.73 percent to close at 7,299.03. It failed to ride on the rebound in most regional markets.

A veteran stock market dealer said investors were bracing for another interest rate increase by the US Fed, which hinted of such hawkish move coming by June or July. At the same time, the dealer said the market was jittery over Duterte’s choices of Cabinet members. It was reported that several seats were earmarked for the Communist Party while the public works portfolio was given to a Villar scion, perceived to be part of a political horse-trading that might characterize the incoming administration as it seeks to gain support among lawmakers.

The day’s decline was led by the property counter, which faltered by 2.68 percent, while the financial, holding firms and services counters slipped 1 percent. Only the mining/oil counter ended higher, albeit with only a marginal gain.

Total value turnover for the day amounted to P7.21 billion. There were 56 advancers, which were overwhelmed by 140 decliners, while 42 stocks were unchanged.

Investors sold down shares of SMIC, ALI,

MPI, Megaworld and GTCAP, which all slid more than 3 percent, while SM Prime, PLDT and BDO all declined by over 2 percent.

One notable decliner outside the PSEi was Alterra, which slid by 44.79 percent in heavy volume.

AEV bucked the day’s downturn along with Jollibee, which gained 0.6 percent.  Non-PSE stock SECB, which is debuting on the MSCI Philippines index after month-end, gained 0.52 percent. Doris Dumlao-Abadilla