Philippine shares on Monday basked in the pessimism that gripped markets worldwide as the Greek debt debacle plagued investor sentiment.
The main PSEi declined by 0.72 percent or 54.67 points to 7,567.38, while the All Shares decreased by 0.63 percent or 27.25 points to 4,331.41.
“Again, the market was down on worries over a Greece default. Almost all markets reacted negatively. This uncertainty caused ripples in markets as all eyes are focused on Greece since the past few months,” said Astro del Castillo, First Grade Finance Inc. managing director.
“Until this Greece issue is resolved, the market will continue with its volatility… For fundamentals, there is really nothing to worry about. The Greece issue is just more on global financial volatility,” he added.
Summit Securities Inc. President Harry Liu said the market is still heavily influenced by the Greece situation and the impending increase in US interest rates.
“Foreign funds are not in yet… There is also nothing in sight that can lift the market. It’s just the same thing – the US Fed interest rate hike and the Greece situation,” Liu said.
“But the interest rate, I think, is slowly being discounted or understood, while Greece is still uncertain. Mainly the market is being dragged by Greece,” he added.
Liu noted market may attract slow accumulations in the second quarter as the first half earnings season kicks off in July. But a “psychological” hindrance hounds August as the “Ghost Month” when many Asian investors prefer to stay out of the market.
More than 1.182 billion shares were traded on Monday, valued at P5.9 billion. Decliners outnumbered advancers, 109 to 63, while 43 issues were unchanged.