Portfolio rebalancing drags PSEi

Share prices on the Philippine Stock Exchange retreated on Monday, dragged by rebalancing efforts with the first half of the year nearing its close.

The main PSEi shed 12.55 points or 0.18% to 6,937.96 at the closing bell. The broader All Shares index gained 15.03 points or 0.36% to 4,244.61.

“Philippine shares traded sideways as investors prepare for the window dressing by rebalancing portfolios ahead of the close of the semester,” Luis Limlingan, head of sales at Regina Capital Development Corp., said in a mobile message.

Limlingan said many are looking at data such as manufacturing, unemployment, and trade.

“Many are also betting that the current heightened inflation will only be temporary as the economy continues to traverse its path to recovery,” Limlingan said.

Locally, inflation clocked in at 4.5% in May. The Monetary Board of the BSP last week hiked its inflation outlook for 2021 to 4.0% from its previous forecast of 3.9%.

More than 1.592 billion shares, valued at P5.348 billion, changed hands. Winners trumped losers, 107 to 96, and 43 issues were unchanged. — RSJ, GMA News