The Philippine Stock Exchange index (PSEi) slumped nearly 3 percent to the 6,900-point mark, the lowest since May, in a sell-off triggered by fears of uncertainty about US policies under the administration of President-elect Donald Trump.
The PSEi lost 2.88 percent or 206.78 points to close at 6,975.09 points, its lowest since May 10 when the index finished at 6,966.35.
The broader All Shares fell by 102.05 points or 2.36 percent to 4,220.2.1
The market traded on negative perceptions of Trump’s effect on the global markets, said Luis Limlingan, managing director at Regina Capital Development Corp.
“Another negative day as sentiment after Trump’s win remains low in the Philippines, and as emerging markets’ currencies have weakened and 10-year Treasury yields spiked up further,” Limlingan said.
Investors took profit from Thursday’s rebound, making the market extremely volatile at this point.
“Investors are cashing out after yesterday’s knee-jerk rally. The EPHE was also down 2.45 percent on Wall Street last night,” said Anton Alfonso of RCBC Securities Inc., referring to the ETF focused exclusively on the Philippine equity market.
Earlier forecasts that the market would hit 7,600 to 7,800 by yearend are now blurry, with investors still cautious about the upcoming US Federal Reserve decision on raising interest rates in December.
All sectoral indices were in the red, led by a 3.46-percent loss in the Holding Firms index.
BDO Unibank Inc. was the sole advancer among the actively traded stocks. Ayala Land Inc., Ayala Corp., Universal Robina Corp., GT Capital Holdings Inc., and Metropolitan Bank and Trust Company posted losses.
More than 861.539 million shares, valued at P9.48 billion, changed hands. Losers outnumbered gainers, 152 to 28, while 45 issues were unchanged.
On Thursday, the main PSEi bounced back by 0.88 percent or 62.83 points to 7,181.87 from Wednesday’s drop on Trump’s surprise victory. The All Shares index rose 0.93 percent or 39.91 points to 4,322.26. Kristyn Nika M. Lazo