The Philippine Stock Exchange Index (PSEi) slipped for the seventh session in a row on Thursday. Experts said that slumping oil prices and the US interest rates increase influenced the decline, not the sentiments over President Rodrigo Duterte.

1. The main-share PSEi lost 14.06 points or 0.18 percent to close at 7,773.31. BPI Securities chief executive Michael Angelo Oyson said this reversal is technical.

He added that the rally of the PSEi was not mainly because of the new administration. Oyson also said that the Philippine market remains attractive but global interest rates would remain low.

“I don’t think it is accurate to say that the outflows are driven by a cautious view by foreign investors towards (Pres.) Duterte,” The Philippine Daily Inquirer reported Oyson as saying. 

"Keep in mind the rally we saw this year was not because of Duterte," he explained. "It was largely driven by carry trade – that is, funds abroad came rushing to the Philippines as they were looking for yields given the negative interest rates in many OECD (advanced) economies."

2. The US interest rate hike is possible with anticipation of the report for US non-farm payroll. Thus, investors continue with profit-taking.

Experts highly agree that the decline of the PSEi is brought by the possible increase of the US interest rate, following earlier results of the Jackson Hole Economic Symposium last week. Aniceto K. Pangan, equities trader at Diversified Securities, Inc., said that the current performance of the PSEi resonates with the hawkish statements of Federal Reserve Chairperson Janet L. Yellen on raising policy rates.

“If the momentum of non-farm payrolls will continue to be high, definitely these will bolster the statement of Yellen to increase interest rates and definitely you’ll see further correction until the level becomes more attractive,” Business World reported Pangan as saying.

READ: PSEi Back To 7,800 Level Along With Asian Stocks And US Non-Farm Payroll Boost

3. Oil price slump due to boosted inventory from the US also influenced the PSEi decline. Luis Gerardo Limlingan, managing director at Regina Capital, said this weighed down investors sentiments.

Limlingan added that this sentiment may continue until today. Frank Gerard J. Barboza, equities trader at AP Securities, Inc., also added that selling pressure in the market since last week is tremendous.

On Thursday’s trade, only the financials counter stayed in the positive territory. It gained 21.32 points or 1.17 percent to close at 1,833.87. Meanwhile, property stocks led the decline with a 58.54 points or 1.65 percent loss to 3,486.47.

What do you think of the local stocks' decline for seven sessions in a row? Do you think President Duterte is somehow causing it? Let us know in the comments section below.