THE Philippine stock market stood strong against global headwinds that continued to plague global markets, with the PSEi cutting its losses at the close of trading after a sell-off in morning trade.
Despite falling by as much as 200 points on concerns of a slowing global growth, the PSEi dropped by only 0.20 percent or 14.40 points to 7,072.46 while the broader All Shares lost 0.17 percent or 6.66 points at 4,037.83.
Lexter Azurin, equity analyst at Unicapital Securities Inc., said the Philippine market in the end showed more resilience, compared with other markets in the region, to increasing concerns over slowing growth in the global economy.
“Today, the market closed down 14 points from the 200 points decline at the open. We are still battered by concerns over China’s growth,” Azurin said.
“But the easing of the decline shows that the Philippine market is resilient compared to its regional counterparts. If you look at the fundamentals, the Philippines is still intact to meet its targets this year despite the impact of the slowdown in China,” he added.
Azurin noted that the Philippines is among the least affected economies it “is not as reliant in China as other countries in terms of export receipts
“In terms of trade aspects, we’re heavily dependent on domestic consumption. Along with Japan, we are considered one of the safe havens by investors,” he said.
Overnight, US markets were down. The Dow Jones lost 2.84 percent or 469.68 points to 16,058.35, the S&P 500 fell by 2.96 percent or 58.33 points to 1,913.85, and the Nasdaq slumped by 2.94 percent or 140.4 points to 4,636.10. The losses dragged Asian equities during Wednesday’s trade.
The international markets were influenced by the weak manufacturing data from China, and worries of a slowing global growth – especially in the US and Eurozone.
Moving forward, Azurin said: “The market’s volatility will continue since the China growth prospects will continue to hamper not just the Philippines but also global markets as well.
And also, the next US Fed meeting is scheduled on September 16 to 17, which implies a possibility that the US will now raise its interest rates.”
Mining and oil and holding firms sectors were the only gainers among the six subindices at the closing bell, increasing by 2 percent and 0.002 percent, respectively. The rest of the market was led by a 0.98- percent slump in the services sector.
The number of shares traded reached 1.943 billion, valued at P8.493 billion. Decliners led advancers, 107 to 60, while 43 issues were unchanged.