Investors take profit ahead of final US debt ceiling resolution

MANILA  -Investors took profit as they awaited the final decision regarding the US debt ceiling issue, forcing the Philippine Stock Exchange index (PSEi) to decline on Tuesday.

The benchmark PSEi fell by 1.25 percent, or 82.49 points, to end at 6,510.67 while the wider All-Shares index slid 1.01 percent, or 35.36 points, to finish at 3,475.05.

“The local bourse dropped as investors booked some gains while waiting for the vote regarding the US debt ceiling deal,” Claire Alviar, Philstocks Financial Inc. assistant manager for research and online engagement, said.

Regina Capital Development Corp. head of sales Luis Limlingan said that investors sold off positions ahead of the Morgan Stanley Capital International (MSCI) rebalancing.

https://business.inquirer.net/402176/investors-trim-equities-portfolio-ahead-of-msci-rebalancing

MSCI rebalancing, which evaluates the stocks comprising the index to ensure it serves as benchmark for the market, is set to be effective by the end of this month.

All sub sectors were in the red, with the mining and oil index booking the steepest decline at 2.02 percent.

About 1.11 billion shares amounting to P4.46 billion were traded. Losers led winners, 127-42, while 43 issues were unchanged.

The shares of Ayala Corp., the most actively traded, dropped by 1.73 percent to P680 each.

This was followed by SM Prime Holdings, down 1.17 percent to P33.85; SM Investments Inc., down 1.03 percent to P910.50; BDO Unibank Inc., down 0.52 percent to P134.30; Monde Nissin, down 3.76 percent to P8.20; and Figaro Coffee Group, up 1.47 percent to P0.69.

Other active names were Metropolitan Bank & Trust Co., down 2.14 percent to P57.15; Universal Robina Corp., down 3.31 percent to P143.10; Ayala Land Inc., down 0.94 percent to P26.25; and Bank of the Philippine Islands, down 2.23 percent to P100.70. INQ