By Arra B. Francia, Senior Reporter

LOCAL EQUITIES tumbled on Monday as investors waited for the impact of the MSCI rebalancing that will take effect next week.

The 30-member Philippine Stock Exchange index (PSEi) retreated 0.28% or 22.08 points to close at 7,725.01 yesterday, marking its third straight session in negative territory. The broader all-shares index likewise shed 0.34% or 16.42 points to 4,765.43.

“Investors were largely on the sidelines today in anticipation of the MSCI rebalancing soon,” Papa Securities Corp. Sales Associate Gabriel Jose F. Perez said in an e-mail on Monday.

MSCI’s quarterly review of index weights will take effect on June 3. It reduced the weight of blue-chip stocks SM Prime Holdings, Inc.; Ayala Land, Inc.; BDO Investments, Inc.; SM Investments Corp.; and JG Summit Holdings, Inc.; while increasing the weight of Ayala Corp. and International Container Terminal Services, Inc.

Meanwhile, Regina Capital Development Corp. Head of Sales Luis A. Limlingan attributed the PSEi’s performance to lingering fears on the US-China trade war.

“Philippine shares suffered losses with investors worried the US-China trade war is hurting economic growth. US markets will be closed today for the Memorial Day Holiday, leaving no catalysts to buy into the market today,” Mr. Limlingan said in a mobile phone message on Monday.

Sectoral indices were equally split between gainers and losers. The mining and oil counter led those in positive territory, rising 0.57% or 41.02 points to 7,238.20. Holding firms added 0.15% or 11.53 points to 7,387.54, while property eked out a gain of 0.3 point to 4,172.61.

Those that ended in the red were services, which dropped 1% or 16.68 points to 1,640.79; industrials with a 0.9% decline or 101.43 points to 11,114.30; and financials with a decrease of 0.25% or 4.40 points to 1,702.39.

Some 706.12 million issues valued at P5.53 billion switched hands on Monday, lower than the previous session’s P7.42-billion turnover.

Decliners outpaced advancers, 99 to 83, while 56 names were unchanged.

Foreign investors were net sellers for the 16th consecutive day at P388.98 million, less than half Friday’s net outflow worth P736.08 million.

Wall Street indices edged higher last Friday, mainly on bargain hunting after steep losses in previous sessions. The Dow Jones Industrial Average climbed 0.37% or 95.22 points to 25,585.69. The S&P 500 index rose 0.14% or 3.82 points to 2,826.06, while the Nasdaq Composite index firmed up 0.11% or 8.73 points to 7,637.01.

Financial markets in the US were closed on Monday to commemorate Memorial Day.

Meanwhile, Asian markets ended mixed Monday as investors focused their attention on US President Donald J. Trump’s Japan visit.