Local share prices fell to its lowest closing since October 26, 2022 as foreign funds sold stocks to rebalance their portfolios in line with changes in the FTSE index. 

The PSEI dropped 82.06 points or 1.32 percent to close at 6,126.34 as the Property counter suffered the biggest loss among all sub-indices. Volume more than doubled to 1.55 billion shares worth P9.07 billion as losers beat gainers 109 to 86 with 35 unchanged. 

“Philippine shares were sold down as the latest FTSE rebalancing took into effect, as investors assessed the latest Producer Price Index reading,” said Regina Capital Development Corporation Managing Director Luis Limlingan. 

He noted that, “the headline PPI grew 0.7 percent in August, coming in above economists’ expectations for 0.4 percent, per Dow Jones. However, the core PPI climbed by 0.2 percent, in line with estimates.”

The FTSE rebalancing was expected to have an estimated total net country outflow of more than P1 billion.

Philstocks Financial Assistant Research Manager Claire Alviar said, “the local bourse’s drop was driven by substantial net foreign selling amounting to P2.48 billion. The market sentiment was also dampened by the escalating global oil prices, sparking concerns about potential impact on inflation rate at home.”

“Oil prices increased after China cut banks’ cash reserve requirements to boost its economic recovery, causing concerns among investors about potential disruptions to oil supply, ultimately driving up prices,” she added.