Stocks drop on MSCI rebalancing

Stocks slid further as foreign funds sold down stocks related to the MSCI rebalancing. The main index shed 33.31 points or 0.51 percent to close at 6,477.36 as the Property sector led the retreat. Volume surged to 2.27 billion shares worth P24.54 billion as losers beat gainers 94 to 83 with 49 unchanged. “Philippine shares slid on heavy turnover as funds were tracking the latest MSCI rebalancing results and with then end of month window dressing at hand,” said Regina Capital Development Corporation Managing Director Luis Limlingan. Philstocks Financial Assistant Research Manager Claire Alviar said “The local bourse  declined amid ongoing concerns overseas and weighed further by the huge net foreign selling.” “Overseas, investors were still waiting for the developments on US debt ceiling particularly with the growing opposition on the tentative deal. In addition to the negative sentiment was the contraction of China’s factory activity. Back at home, foreigners recorded a net selling of P4.15 Bn following the MSCI Rebalancing,” she added. China Bank Capital Managing Director Juan Paolo Colet said “A raft of end of month trades exceeding P24 billion pushed the market lower, with the index breaching its 6,500 support. The bulk of value turnover was related to the MSCI rebalancing, which affected top traded names and led to a net foreign outflow of more than P4 billion.”