Local bourse drops 39 pts. after 4-day rally

The local stock market index on Wednesday closed in red, dropping by 39.75 points, or 0.57 percent, to close at 6,944.88.

Most sectors declined, with Properties losing the biggest at 2.49 percent, followed by Miners and Industrials down by 1.11 percent and 0.41 percent, respectively.

Services was the lone gainer, inching up by 0.02 points.

Converge ICT Solutions Inc. was the top index gainer, jumping by 4.18 percent to P16.94. SM Prime Holdings Inc. on the other hand, was the biggest loser, down by 3.31 percent to P30.70.

BDO Unibank, Inc. was the most actively traded stock with a value of 608,372,076.00, up by 2.19 percent, followed by International Container Terminal Services, Inc., with a value of 407,027,600.00, up by 0.05 percent.

The local stock market closed in the red after several consecutive days of gains. According to Regina Capital Development Corp.'s head of sales, Luis Limlingan, US stocks also ended with mixed results as investors awaited the Consumer Price Index report for August on Wednesday and the Producer Price Index on Thursday. These reports are important indicators for the Federal Reserve's decision on interest rates in September.

“Investors also digested the widening of the Philippines’ balance of trade in goods deficit last July amid a tepid export performance and the drop in its June foreign direct investment net inflows, “ Philstocks Financial Inc. senior research analyst Japhet Tantiangco meanwhile said.

The net market value turnover was P6.08 billion. Decliners exceed Advancers at 131 to 66, while 46 names remain unchanged.

The exchange rate for the peso closed at P55.97 to the dollar.