The stock market took its cue from the negative sentiment on Wall Street over the weekend, plunging the main PSEi back to the 6,900 level, as investors found a dearth of market- lifting news.
The PSEi lost 88.67 points or 1.26 percent to close at 6,979.06 on Monday, while the broader All Shares declined by 31.66 points or 0.74 percent at 4,222.62.
Justino Calaycay Jr., head of marketing and research at A&A Securities Inc., said in a market note the market continues to succumb to selling pressure amid a volatile environment.
On Friday, the Dow Jones Industrial Average was down 0.19 percent or 35.89 points at 18,867.93, while the S&P 500 declined by 0.24 percent or 5.22 points at 2,181.90, and the Nasdaq slipped by 0.23 percent or 12.46 points to 5,321.51.
“Certain technical measures are still looking favorable to the bulls as the market begins the first of the final six weeks for 2016 trades,” Calaycay said.
“Despite all the negatives that have emerged in the recent weeks, tempered somewhat by positive numbers for the broad economy and corporate earnings, the PSEi has been able to recover and hold year-to-date gains, albeit far narrower than where it stood in early August,” he added.
“Foreign funds’ negative flow should dissipate somewhat – even as the main driver for these funds rest more on externalities such as the US economy and Fed rate action than domestic issues,” he said.
Leading the sectoral declines were the Property index (-1.90 percent) and Mining and Oil (-1.28 percent).
Among the actively traded stocks, BDO Unibank Inc., Globe Telecom Inc. and Century Pacific Food Inc. registered gains while Ayala Land Inc., Ayala Corp. and PLDT Inc. posted losses.
More than 1.97 billion shares were traded, valued at P5.67 billion. Advancers led decliners in the broader market, 88 to 86, while 49 issues were unchanged.
On Friday, PSEi increased by 0.25 percent or 17.61 points at 7,067.73, while the All Shares improved by 0.28 percent or 11.88 points at 4,254.28.