Financial markets, including the Philippine Stock Exchange, continued to suffer from the headwinds of the debt crisis in Greece, especially Greeks voted “No” during a referendum Sunday on whether Athens should accept the bailout plan from its creditors.
The resounding “No” to austerity the measures under the bailout proposal was more than enough selling pressure markets could handle.
The PSEi fell by 1.06 percent or 80.15 points to 7,455.15, while the All Shares dropped 1.28 percent or 55.21 points to 4,265.22.
Losers outnumbered gainers by 131 to 31, while 42 issues were unchanged. More than 519.54 million shares, valued at P5.84 billion, changed hands.
“Greece’s ‘No’ vote against austerity measures proposed by its European creditors adds to the uncertainty over its membership in the Eurozone,” said Grace C. Cerdenia, head of research at online brokerage firm 2TradeAsia.com.
“Traders took their cue from the foreign institutional players’ response to the referendum, as several were inclined to either hold on to cash or reposition their funds in safer markets, although the contrarians were quick enough to seize the dips as buying opportunities,” she added.
Astro del Castillo, First Grade Finance Inc. managing director, said in a brief phone interview that the market still got the blues from the debt crisis in Greece.
“[The latest from Greece] is the immediate risk that most funds are now looking at: Fund managers continue to flock to safe havens. We see the Philippine market is not immune from the downtrend from the Greek issue which has also pulled down global markets,” Del Castillo noted.
Despite the view that the Philippines is one of the markets that is less prone to the ramifications of the Greek debt debacle, Del Castillo said the local equities are going to bear the brunt of what is happening in the Eurozone.
“For now, it seems that the market will continuously be affected by the news coming from Greece. There were no catalysts and incentives to lift the market up. But for this week, if inflation figures turn out to be favorable, we may see a reverse from selling,” he added.
The Philippine Statistics Authority is releasing the June inflation numbers today.