PSEi extends losing streak on GDP, Fed jitters

Investors remained cautious on Tuesday ahead of the release of local economic growth data and the American central bank’s next move later this week, with the benchmark stocks index reaching a new seven-month low.

By the closing bell, the Philippine Stock Exchange Index (PSEi) lost 0.7 percent or 43.41 points to 6,153.47, marking three consecutive trading sessions of declines.

Likewise, the broader All Shares Index shed 0.45 percent or 16.33 points to close at 3,623.52.

A total of 1.53 billion shares worth P5.64 billion changed hands, stock exchange data showed, as foreigners made net purchases worth P199.32 million.

While the bourse has already dropped by 18.54 percent from its recent high of 7,554.68 recorded in October, it has not yet entered the ominous bear territory.

For the PSEi to be officially within the bear market, it must have declined by at least 20 percent from a recent high.

Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., said traders opted to sell shares ahead of the US Federal Reserve’s rate-setting meeting on Wednesday and the release of Philippine gross domestic product data on Thursday.

Banks were the top gainers as investors snapped up shares of China Banking Corp. (up 6.01 percent to P68.80), BDO Unibank Inc. (up 2.16 percent to P142) and Bank of the Philippine Islands (up 0.8 percent to P125.50).

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International Container Terminal Services Inc. was the most actively traded stock as it tumbled by 6.88 percent to P349.20 per share.

It was followed by Chinabank, BDO, SM Investments Corp. (up 0.24 percent to P822) and BPI.

Other actively traded shares were Ayala Land Inc., flat at P24.65; AREIT Inc., down 0.13 percent to P39.75; Synergy Grid and Development Phils. Inc., up 4.74 percent to P11.50 following Maharlika Investment Corp.’s acquisition of a 20-percent stake in the country’s transmission grid operator; Metropolitan Bank and Trust Co., down 0.71 percent to P70.20; and Ayala Corp., down 1.34 percent to P552.50 each.

Losers overpowered gainers, 112 to 66, while 61 companies closed unchanged, stock exchange data also showed.