PSEi tracks Asian shares’ drop on China tech woes

PHILIPPINE shares declined on Wednesday along with Asian markets, which dropped on regulatory worries in China, and as foreign investors sold index heavyweights.

The benchmark Philippine Stock Exchange index (PSEi) shed 21.95 points or 0.30% to close at 7,230.15 on Wednesday, while the broader all shares index lost 2.70 points or 0.06% to finish at 4,453.82.

“With most of the Asian markets downed with Chinese tech stocks big losses, [the] local market went down on profit taking,” Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said in a text message.

“The local bourse dropped… following the Asian peers and weighed down further by the decline of the heavyweights, Globe Telecom, Inc. and SM Investments Corp. due to net foreign selling,” Claire T. Alviar, senior research and engagement officer at Philstocks Financial, Inc., said in a Viber message.

Ms. Alviar said Globe saw net foreign outflows reach P71.48 million, while SM logged P95.90 million. Globe shares also lost 4% or P126 on Wednesday, closing at P3,022 apiece.

Asian stocks slipped on Wednesday with new regulatory worries sparking the steepest sell-off in seven weeks for Chinese tech shares, while short-term Treasury yields spiked as investors wagered on inflation pulling forward interest rate rises, Reuters reported.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.8% led by a 3.5% decline on the Hang Seng tech index after China’s internet watchdog said it plans stricter registration rules for younger net users.

Also, the US Federal Communications Commission on Tuesday voted to revoke the authorization for China Telecom’s US subsidiary to operate in the United States, citing national security concerns.

The decision means China Telecom Americas must now discontinue US services within 60 days. China Telecom, the largest Chinese telecommunications company, has had authorization to provide telecommunications services for nearly 20 years in the United States.

Sectoral indices were split on Wednesday. Industrials gained 194.27 points or 1.80% to 10,945.67; property went up by 19.10 points or 0.59% to 3,251.14; and financials inched up by 3.20 points or 0.20% to 1,567.09.

Meanwhile, holding firms gave up 119.87 points or 1.65% to end at 7,118.98; services declined by 7.56 points or 0.39% to 1,906.48; and mining and oil shaved off 29.05 points or 0.27% to 10,477.42.

Decliners beat advancers, 104 versus 94, while 47 names closed unchanged.

Value turnover went up to P7.75 billion with 746.19 million issues traded on Wednesday, higher than the P6.43 billion with 834.55 million shares on Tuesday.

Net foreign buying climbed to P184.04 million on Wednesday, up from the P127.74 million logged the previous trading day.

“[The] market would continue to move range-bound from 7,000 to 7,450,” Diversified Securities’ Mr. Pangan said. — Keren Concepcion G. Valmonte with Reuters