Same global factors again upset the local stock market on Wednesday, sending back the Philippine shares below the 6,000-point level.
Jonathan Ravelas, chief market strategist of BDO Unibank Inc., said in a text message that the market’s inability to stay above the 6,000-point level triggered a sell off, still driven by the September US Federal Reserve tapering talks and concerns about Syria.
According to Ravelas, the same factors caused investors to stay at the sidelines and wait for fresh leads.
“With market closing below the 6,000 levels anew implies further weakness ahead. Major support lies at the 5,500 levels,” he added.
From a modest increase on Tuesday, the Philippine Stock Exchange index (PSEi) succumbed to a correction, falling by 1.90 percent, or 115.58 points to 5,968.33. The wider all-shares barometer fell by 1.57 percent, or 58.35 points to 3,663.80.
Similarly, all the sectors registered significant falls, with each of them losing by more than 1 percent.
Holding firms posted the largest drop, sliding by 2.29 percent, or 122.73 points to 5,236.08, followed by the services counter, which shed by 1.84 percent, or 35.60 points to 1,894.26.
Industrial also fell by 1.80 percent, or 169.41 points to 9,242.10, while property decreased by 1.53 percent, or 35.36 points to 2,276.82.
Mining and oil, on the other hand, went down by 1.10 percent, or 149.91 points to 13,521.98, while financials lost 1.09 percent, or 15.99 points to 1,453.74.
Total value turnover stood at P6 billion, with decliners edging against advancers, 105 to 35.
Some of the most actively traded stocks were SM Investments Corp., Philippine Long Distance Telephone Co., Ayala Corp., Ayala Land Inc., GT Capital Holdings Inc., Alliance Global Group Inc., SM Prime Holdings Inc., Philippine National Bank and Metropolitan Bank and Trust Co.
The local stock market concluded Tuesday’s trade with a slight improvement, mirroring the trend in most of its neighboring markets, after investors around the globe saw a slight improvement in the global economy.
The PSEi made a slight recovery from Monday’s correction, rising a bit by 0.36 percent, or 22.1 points to 6,083.91, while the wider all-shares index posted a 0.27-percent gain, or 10.12 points to 3,722.15.