A sluggish global market affected the mood of local investors mid-week as the main Philippine index fell below the 6,800-level for the first time in a few days.
The Philippine Stock Exchange index (PSEi) shed 120.35 points, or 1.75 percent to end at 6,762.38, while the wider all shares lost 69.68 points, or 1.70 percent to 4,040.94.
Accord Capital Equities Corp. analyst Justino Calaycay said the slump in US equities and an early drop in East Asian markets, which are among the first to open the regional and global trading day, set the tone for Wednesday’s activity.
“Political tensions and disappointing earnings combined to draw some apprehension and justify a sell-off, particularly with markets generally trading near 52-week highs and valuations remaining above historical norms,” Calaycay said.
Most of the sectoral indices also posted significant losses. Mining and oil had the largest decline, retreating by 448.34 points, or 2.77 percent to 15,735.67, followed by property, which was down by 58.15 points, or 2.11 percent to 2,698.42.
Next are financials, which fell by 32.53 points, or 2 percent to 1,590.71, and industrial, which dropped by 195.42 points, or 1.87 percent to 10,238.01.
Holding firms also went down, falling by 109.54 points, or 1.76 percent to 6,113.39, as well as services, which plummeted by 15.29 points, or 0.75 percent to 2,032.80.
The number of shares that changed hands grew to 2 billion, valued at P9.1 billion. Decliners beat advancers, 148 to 44, while 32 were unchanged.
Some of the most actively traded stocks on Wednesday were Alliance Global Group Inc., down 0.50 percent to P29.90, Metropolitan Bank and Trust Co., down 3.91 percent, BDO Unibank Inc. fell 1.80 percent to P87.10, and Philippine Long Distance Telephone Co., down 0.21 percent to P2,884.00.
On Tuesday, the local stock market was already on the brink of a correction with only minor gains as the main index found it hard to break the 6,900-resistance level.
PSEi then only had an 11.83-point gain or 0.17 percent to 6,882.73, in contrast with the wider all shares, which retreated 1.35 points, or 0.03 percent to 4,110.62.