PSEi down 2.94% on FTSE rebalancing, Wall Street plunge

Share prices on the Philippine Stock Exchange bled on Friday as investors sold positions after a rebalancing of the Financial Times Stock Exchange (FTSE) and after they cues from the sharp drop overnight on Wall Street.

The bellwether PSEi shed 194.75 points or 2.94% to 6,436.10 at the closing bell. The broader All Shares lost 95.68 points or 2.39% to 3,909.41.

“Philippine shares were sold down towards market on close as funds realigned with the latest FTSE rebalancing decision,” Regina Capital head of sales Luis Limlingan said.

FTSE indices provide the basis for worldwide investment analysis, performance measurement, asset allocation and hedging.

Fund managers reallocate funds depending on the change in the weight for each index stock.

“In addition, sentiment spilled over as  US equities ended lower yesterday, as the rise in treasury yields prompted investors to sell tech stocks,” Limlingan said.

Wall Street ended sharply lower on Thursday, with the Nasdaq tumbling 3%, hit by rising Treasury yields and fresh worries about the coronavirus pandemic in Europe, according to a report by Reuters.

More than 3.526 billion shares valued at P10.408 billion, changed hands. Decliners led advancers, 157 to 64, and 35 issues were unchanged.—LDF, GMA News