Investors opted to cash in on gains from last week’s winning streak, dragging the PSEi down more than 100 points ahead of the US Fed policy meeting.
The main PSE index fell by 2.47 percent or 174.27 points to 6,868.89, while the wider All Shares also declined by 1.58 percent or 67 points to 4,162.39.
Ed Francisco, president of BDO Capital & Investment Corp., said investors were taking profits while prices are up as they are afraid that the local market may not sustain an upward trajectory after a rate hike from the US.
“The PSEi is down as investors are likely taking a breather from the four-day winning streak last week. Trading activity may likewise be sluggish ahead of the US Fed policy meeting this week,” Anton Alfonso, RCBC Securities Inc. research analyst, said in a market note.
Investors are in risk-off mode and staying away from risky assets like equities ahead of the US Federal Reserve’s Federal Open Market Committee (FOMC) meeting on December 13 to 14. The Fed is expected raise US interests by 25 to 50 basis points.
Only the Mining and Oil counter registered gains after the crude market rejoiced over the pledge of oil producers to cut production.
Pilipinas Shell Petroleum Corp. was the only advancer among the actively traded stocks. The decliners included Ayala Corp., Ayala Land Inc., PLDT Inc., BDO Unibank Inc., Universal Robina Corp. and Bank of the Philippine Islands.
Total volume reached 2.65 billion shares, valued at P6.27 billion. Losers outpaced gainers, 108 to 82, while 40 issues traded unchanged.
On Friday, the main PSEi gained 20.78 points or 0.30 percent to 7,043.16, while the broader All Shares added 7.76 percent or 0.18 percent to 4,229.39.