Index stays below 7,000 level

MANILA, Philippines - Share prices stayed yesterday below the 7,000 mark due to last minute selling by investors.

The benchmark Philippine Stock Exchange index (PSEi) went down 73.90 points, or 1.05 percent, to 6,909.82, while the broader All Shares index finished at 4,007.08, 31.95 points lower than Wednesday’s close.

Analysts said while share prices rose earlier in the day, there was last minute selling amid lingering concerns on the impending rate hike of the US Federal Reserve and worries on China’s economy.

“Last minute selling discouraged further bargain hunting. Fears of Fed rates in December and worries on China continue to haunt investors. Most continue to realign their portfolios,” said Astro del Castillo, managing director of First Grade Finance Inc.

Value turnover was thin at P6.52 billion. Decliners outnumbered gainers, 78 to 76, while 50 stocks were left unchanged.

More and more analysts expect the US Federal Reserve to raise interest rates in December following the release of better-than-expected October jobs data.

According to reports, the US economy created 271,000 jobs in October, significantly higher than 185,000 jobs that economists had forecast.

Analysts said the strong number raised expectations the US Federal Reserve would raise interest rates at its policy meeting in December.

Earlier, US Federal Reserve chairman Janet Yellen said the rise in US interest rates in December was “a live possibility.”