Lower weight rating for SMIC drags down index

he bellwether index fell back to the 6,500 ter ritor following Morgan Stanle Capital Interna tional’s lower weight rating for most valuable firm SM Investments Corp. SMIC .

he hilippine Stock xchange index declined 1.14 percent or 75.90 points to 6,580.71, snapping a three da climb. hile the broader all shares index shed 0.99 percent or 40.06 points to 3,999.07.

MSCI index recalibrated its list of preferred stocks, putting less weight on SMIC, prompting it shares to plunge 7.73 percent to 805.50 that dragged the main index. Given MSCI’s influence, fund managers and high net investors take note of MSCI’s recommendations.

stro del Castillo, managing director of irst Grade inance Inc., said share prices also fell be cause of profit taking and a pause in the climb of sian bourses.

egional stocks ended lower given uncertainties over the S ederal eserve’s timeline in tapering off its bond bu ing stimulus program.

apan’s ikkei 225 sank 2.12 percent or 297.22 points to 13,752.94, while ong ong’s ang Seng index eased 0.01 percent or 1.88 points to 22,539.25.

all Street also succumbed to investors’ specula tion over the S ederal eserve’s plan.

he ow ones industrial average slipped 0.73 percent or 113.35 points to 15,337.66 while the broader Standard oor’s 500 index dropped 0.52 percent or 8.77 points to 1,685.39.

ocall , all counters, save mining and oil that rebounded 0.45 percent or 65.58 points to 14,673.66, were in the red. he decliners were led b holding firms that closed 2.88 percent or 173.98 points lower at 5,866.03.