THE Philippine Stock Exchange index (PSEi) dropped towards the 7,300 territory as investors reeled from the uncertainties over the Greek debt crisis and the unabated plunge of Chinese equities.
The benchmark PSEi fell by 1.06 percent or 79.22 points to 7,363.43, while the All Shares also plunged by 1.07 percent or 45.56 points to 4,214.14.
“The PSEi was on its fourth day of losing streak as investors are still in sell-off mode after the Greeks voted ‘No’ in a referendum on Sunday. Greece has been given until Sunday to accept a rescue package or face expulsion from the Euro,” Joylin Telagen, research analyst at IB Gimenez Securities Inc., said.
“Investors hate uncertainties, and staying liquid is a much better option for now. But I expect volatility to continue this week on the Greece debt concern and the release of the Fed minutes tonight that might give hints on the timing of the US interest rate hike,” she added.
Asian equities tumbled on Wednesday as a collapse in Chinese shares began to contaminate other markets, and after European leaders slapped Greece with a deadline to submit fresh bailout reform proposals, according to a report by Agence France-Presse.
With markets buffeted by two global crises, traders ran for the cover of investments considered safe in times of upheaval such as the yen, the wire service noted.
Shanghai plunged 5.90 percent, or 219.93 points, to end at 3,507.19 after losing more than eight percent at one point. The losses came despite Chinese leaders announcing fresh measures to staunch a correction that has wiped trillions off the country’s markets.
Hong Kong tanked 5.84 percent, or 1,458.75 points, to 23,516.56 – its lowest close since the start of January. At one point it had tumbled 8.43 percent, its biggest drop since October 2008 at the height of the global financial crisis.
On the PSE, decliners led advancers 130 to 46 while 40 issues were unchanged. Over 19.377 billion shares, valued at P7.98 billion, were traded.