The local stock market fell on strong foreign selling as investors wait for the US Federal Reserve and Bangko Sentral ng Pilipnas' (BSP) last policy meetings for the year.
The main index plunged by 113.45 points or 1.72 points to close at 6,501.71 with Banks leading the retreat across the board. Volume was higher at 1.13 billion shares worth P6.6 billion as losers beat gainers 124 to 65 with 51 unchanged.
“Philippines share closed just slightly above the 6500 level, as investors continue to clean positions ahead of the new year while others remain on the sidelines before the FTSE,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
Chinabank Capital Corporation Managing Director Juan Paolo Colet said “the PSEi fell amidst strong selling pressure as foreigners net sold nearly P1.4 billion worth of shares and investors hedged their risk ahead of the monetary policy meetings of the Federal Reserve and Bangko Sentral ng Pilipinas this week.”
He added that “in view of the failure of 6,550 to hold, the next support level is now around 6,400.”