Philippine shares tumbled on Monday, dragged by declines across the globe after the latest US and China data announcements failed market expectations.
The benchmark PSE index (PSEi) closed down by 1.54 percent or 118.08 points at 7,547.44, while the wider All Shares Index fell 1.26 percent or 55.02 points to 4,320.13.
“It’s due to the macro factors, especially from the US and China,” said Caylum Trading Institute President Edmund Lee.
Most Asian stock markets fell but Chinese shares suffered the most, with the benchmark Shanghai Composite Index closing down 8.48 percent, or 345.35 points, at 3,725.56, Agence France-Presse reported.
Economic data in China caused sentiment to turn, despite official efforts to support the stock market following a rout that began last month. On Monday the government said profits of major industrial firms slipped 0.3 percent year-on-year in June, and on Friday, an independent survey of manufacturing activity came in at its weakest reading since April 2014.
Investors in China also took a lead from their US counterparts, who continued to cash out on Friday as data showed sales of new single-family homes fell in June and May sales were much lower than previously reported.
Lee, however, said there is nothing surprising about Monday’s drop in prices, which he said must take place first before the market could resume an upward trend.
IB Gimenez Securities Inc. Research analyst Joylin Telagen said share prices had been on the rise and were bound to go down at some point. She saw market sentiment also dampened by the latest data from China and the US.
All sectoral indices finished in the red, with financials as the biggest loser, sustaining a loss of 1.80 percent or 30.37 points at 1,659.17.
Total volume turnover stood at P5.517 billion. Decliners outnumbered advancers 123 to 44, while 41 issues closed unchanged.
On Friday, the PSEi finished up 12.30 points or 0.16 percent at 7,665.52 , while the All Shares advanced 5.62 points or 0.13 percent to 4,374.15.