Stocks slide on portfolio rebalancing

MANILA, Philippines — The local bourse ended the last trading day of the month in negative territory, with the benchmark Philippine Stock Exchange index (PSEi) finishing at 6,223.73, down by 41.41 points or 0.66 percent, as investors continued to take profit from the market.

The broader All Shares index likewise slipped, falling by 11.85 points or 0.35 percent to 3,327.83.

A total of P7.9 billion worth of shares changed hands yesterday, with decliners edging advancers, 89 to 79, while 49 issues were unchanged.

Mikhail Plopenio of Philstocks Financial said the 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 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. The local bourse has been in the red territory for the whole trading day,” Plopenio said.

Meanwhile, Luis Limlingan of Regina Capital said the PSEi wrapped up the last trading day of November down as investors rebalanced their portfolios.

Around Asia, stocks mostly rose to clock their strongest performance in 10 months, as investor sentiment warmed on a relatively benign global interest rates outlook and signs of economic recovery.

“Seems market participants are clearly taking the no landing and Fed done scenario to heart. Modest China domestic stimulus is having a positive effect,” said John Milroy, an investment adviser at Ord Minnett in Sydney.

“Inflation prints and bond markets suggesting the central banks are at least due a pause in the raising cycle. Markets like that.”

Stock markets around the world struggled on Wednesday, after a strong month driven by market expectations of peak Federal Reserve rates, and as a fall in the dollar and in US bond yields loosened financial conditions.

Ten-year US yields are down more than 60 basis points in November, on track for the steepest monthly drop since late 2008.