MANILA, Philippines – Local shares fell on Friday as investors make last-minute adjustments to their portfolios ahead of the main index’s rebalancing, while unease over rising infections grows.
The bellwether Philippine Stock Exchange index (PSEi) lost 3.61% to cap the week at 6,320.19.
The broader All Shares index, on the other hand, shed 2.04% while sub-indices were in the red except for the financials counter, which gained a modest 0.02%.
“Shares were sold down at close as tracker funds following the PSEi had to rebalance their portfolios to allow AC Energy Corp. and Converge to be included in their portfolios as several names were top sliced at market on close,” Luis Limlingan, head of sales at Manila-based brokerage Regina Capital, said in a market commentary.
The Philippine Stock Exchange recently announced the results of its latest review of the PSEi and sectoral counters. Starting August 16, AC Energy Corp. and Converge ICT Solutions Inc. will be part of the 30-member PSEi, replacing DMCI Holdings Inc. and Emperador Inc.
But beyond the rebalancing, Limlingan said the PSEi’s slump tracked a “choppy” trading in the region. Wall Street’s three main indexes ended at record highs again Thursday but Asia struggled to follow suit, with investors pricing in the likelihood that Federal Reserve officials will start withdrawing the vast financial support put in place at the start of the pandemic.
The fast-spreading Delta virus variant, which is forcing governments like the Philippines to introduce containment measures, and the Chinese government’s campaign to tighten its grip on the world’s number two economy were also playing on sentiment.
Apart from Manila, Tokyo, Hong Kong, Shanghai, Singapore, Seoul, Taipei, Bangkok and Jakarta were also down. Sydney, Wellington and Mumbai rose.
At home, foreign investors bought P259.73 million more shares than they sold in the stock market. A total of 1.93 billion local shares, valued at P14.36 billion, switched hands on Friday. — with a report from AFP

You may also like