Local shares fall ahead of MSCI rebalancing
MANILA, Philippines — Local shares sank to the 6,500-level on Tuesday as investors started selling ahead of the scheduled Morgan Stanley Capital International (MSCI) rebalancing.
The Philippine Stock Exchange index lost 1.25% to close at 6,510.67. The broader All Shares index shed 1.01%.
All sectoral counters ended in the red, with mining and oil stocks posting the biggest loss after slumping 2.02%.
Luis Limlingan of Regina Capital, a Manila-based brokerage firm, said investors likely unloaded their shares ahead of the MSCI rebalancing on May 31.
“Note, the Philippines is on a net outflow for this quarter's rebalancing,” Limlingan said in a market commentary.
As it is, Asian investors traded nervously Tuesday as they kept an eye on Washington, where lawmakers are expected to vote this week on a deal to hike the US debt ceiling and avoid a painful default. There were no catalysts from Wall Street owing to the Memorial Day break.
Hong Kong and Shanghai edged up after recent losses fuelled by worries about the Chinese economy as the post-lockdown recovery fades, while there were also gains in Tokyo, Singapore, Seoul and Mumbai.
But apart from Manila, Sydney, Wellington, Taipei, Bangkok and Jakarta also retreated. — with AFP
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