Global uncertainties continued to drag down Philippine shares, sending the local stock market to its second correction for this week, despite having expectations met with respect to the Federal Reserve decision on its stimulus program.
Global markets also slumped overnight with the Standard and Poor’s 500 giving up the most in two weeks, while Asian markets followed suit led by Japan and China.
First Metro Investment Corp. President Roberto Juanchito Dispo said that local stock market was in bloodbath again, because it has recently been taking cues abroad.
“The US market was down 200 points last night [Wednesday] because, officially, the Federal Reserve made it clear that the quantitative easing will end by 2014, so there’s no more speculations,” he said.
“Secondly, the manufacturing index in China was down, which is below expectation. The market was expecting 49 percent and it came out 48 percent. It disappointed the market,” Dispo added.
Jun Calaycay of Accord Capital Equities Corp., on the other hand, said that with only a day left in the balance for the week, the market will feel an overhang of the “Fed-Speal” theme, even as investors expect some rationality to return to trading and investment decisions.
“The market has by and large ignored all other signals as the Fed decision took and so far has kept centerstage,” he added.
Dispo said that the more bad news will come out, the better because the uncertainties are slowly being addressed.
The Philippine Stock Exchange index further slid on Thursday, falling somehow deeply by 2.86 percent, or 186.53 points to 6,326.67, while the broader all-shares index shed 102.47 points, or 2.55 percent to 3,919.65.
Each of the sectors shed more than 2 percent led by the mining and oil, which has prolonged its losing trend, falling by 383 percent, or 589.87 to 14,825.78, followed by the property counter, which went down 3.31 percent, or 85.96 points to 2,513.92.
The holdings firm counter also registered a significant loss, declining by 3.19 percent, or 186.63 points to 5,666.19, while services decreased by 2.73 percent, or 53.10 points to 1,893.57.
Also industrial dropped by 2.49 percent, or 41.60 points to 1,628.45, while financials shed 2.49 percent, or 41.60 points.
A total of 139 issues declined, while those that advanced reached 28. Only 36 issues were unchanged.
Some of the most actively traded stocks were SM Investments Corp., SM Prime Holdings Inc., Ayala Corp., Ayala Land Inc. and Philippine Long Distance Telephone Co., whose prices dropped.