PSEi tests 7,550

THE LOCAL stock barometer slipped on Tuesday as investors across the region were unnerved by a slump in oil prices and US stocks futures.

The main-share Philippine Stock Exchange index shed 31.52 points or 0.42 percent to close at 7,550.27, hardly lifted by recent dovish remarks from a US Federal Reserve official.

The local index was weighed down most by the services counter which slid by 1.17 percent while the holding firms, mining/oil, financial and property counters also slipped.

Only the industrial counter eked out a modest gain.

Value turnover amounted to P8.6 billion. There were over twice as many decliners (131) as there were advancers (65).

The biggest drag to the PSEi was MPI (-3.57 percent) while PLDT and JG Summit both slumped by over 2 percent.

GT Capital, BDO and Megaworld all slipped by over 1 percent while ALI, SM Prime, SMIC, Globe, Bloomberry and BPI all faltered.

The support level at 7,550, representing the 130-day moving average, is seen crucial for the market this week. If breached, the pullback is next seen to test 7,400.

Expectations that the US Fed will keep its targeted interest rate unchanged at next week’s meeting were bolstered by comments from Federal Reserve Governor Lael Brainard that she would like to see a stronger trend in U.S. consumer spending and evidence of rising inflation before another hike in Fed rates.