PSEi falls 1.34% after rebalancing

Manila, Philippines – Stocks began the week on a wobbly footing as investors searched for fresh leads to trade after last week’s rebalancing of the 30-member Philippine Stock Exchange index (PSEi).

The bellwether index closed at 6,254.36, down by 1.34 percent, with all counters but services in the red.

“The market was largely driven by selling pressure today, with prices seemingly stalled as investors await for a new catalyst to emerge after the PSEi rebalancing last Friday,” said brokerage house Regina Capital Managing Director Luis Limlingan.

The periodic PSEi rebalancing saw online gaming share DigiPlus Interactive Corporation joining the roster of the exchange’s largest, most valued and most liquid stocks.

Its inclusion in the 30-member PSEi meant the exit of fellow casino operator Bloomberry Resorts Corporation, which was transferred to the mid-cap index.

The changes take effect on Aug. 18, the PSE said in a notice.

While most shares were down, DigiPlus [PSEi: PLUS] picked a different way: This casino stock rallied by 21.4 percent, or P5.75 per share, to end the session at P32.65 each.

As the second-quarter earnings report season draws to a close, Limlingan said “attention may now shift to the upcoming US inflation data, which could shape the Fed's next policy direction.”

Wall Street ended strong on Friday as tech stocks performed better amidst general caution.

“This reflects the market's ongoing focus on economic stability and future interest rate trajectory,” he said.