PH stocks drop further amid MSCI rebalancing

Philippine stocks closed the month lower due to continued profit taking and window dressing, and amid the last day of the Morgan Stanley Capital International (MSCI) rebalancing.

The Philippine Stock Exchange index (PSEi) retreated by 41.41 points or 0.66% to close at 6,223.73 on Thursday, while the broader all shares index fell by 11.85 points or 0.35% to finish at 3,327.83.

“The local market gapped down at the open and saw continuing weakness for the day given continued profit-taking activities amidst the last day of MSCI rebalancing and possible month-end window dressing,” China Bank Securities Corp. Research Associate Lance U. Soledad said in an e-mail.

“Moreover, buying appetite may have also remained tepid ahead of the release of October US personal consumption expenditure price index data later tonight,” he added.

The PSEi ended lower on Thursday as investors tweaked their portfolios amid the MSCI rebalancing, Regina Capital Development Corp. Head of Sales Luis A. Limlingan likewise said in a Viber message.

“Oil prices ascended after investors shifted their focus to the OPEC+ meeting aimed at determining output policy,” Mr. Limlingan added. OPEC+ or the Organization of the Petroleum Exporting Countries and their allies including Russia were set to hold an online ministerial meeting overnight.

Oil prices traded steadily after rising more than $1 on Wednesday ahead of expected production cuts by the OPEC+ group, Reuters reported.

US crude pared losses to gain 0.23% to USD 78.04 per barrel and Brent was down 0.18% at USD 82.95.

“This Thursday, the local market dropped… as investors continued with their profit taking. Concerns over China’s economy, which is one of the Philippines’ major trading partners, also weighed on sentiment. This came following its November official manufacturing PMI (purchasing managers’ index) data, which stood at 49.4, indicating a contraction, and its non-manufacturing PMI which registered 50.2, declining from the prior month’s 50.6,” Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio said in a Viber message.

The majority of sectoral indices closed lower on Thursday. Holding firms declined by 95.49 points or 1.59% to 5,910.80; industrials dropped by 75.73 points or 0.86% to 8,688.02; mining and oil fell by 73.56 points or 0.75% to 9,667.60; and services went down by 9.68 points or 0.63% to 1,515.44.

On the other hand, property climbed by 28.98 points or 1.07% to 2,723.03 and financials rose by 0.22 point or 0.01% to 1,742.53.

Value turnover rose to PHP 7.9 billion on Thursday with 396.25 million shares changing hands from the PHP 5.75 billion with 449.96 million issues traded the previous day.

Decliners outnumbered advancers, 89 compared to 79, while 49 names ended unchanged.

Net foreign selling stood at PHP 320.3 million on Thursday, versus the PHP 202.33 million in net buying seen on Wednesday. — R.M.D. Ochave with Reuters