Local stocks plunged Thursday on MSCI rebalancing

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Local stocks succumbed to profit-taking Thursday as investors followed the movement of the latest MSCI rebalancing. MSCI is a benchmark

Local stocks succumbed to profit-taking Thursday as investors followed the movement of the latest MSCI rebalancing.

MSCI is a benchmark developed by Morgan Stanley Capital International to measure the performance of large and mid-cap segments of the stock market. The 30-company Philippine Stock Exchange index plunged 120.04 points, or 1.91 percent, to close at 6,175.25, while the broader all-shares index fell 47.41 points to settle at 3,334.78.

“Local investors followed the movement of the latest MSCI rebalancing to end the month of August, while others digested the weaker-than-expected payrolls data and annual gross domestic product forecast that nevertheless suggested the US Fed could be done hiking rates,” Regional Capita Development Corp. head of sales Luis Limlingan said.

China Bank Capital managing director Juan Paolo Colet said investor sentiments also soured after reports of lower domestic trade and fifth straight month of contraction in Chinese manufacturing activity.

 

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