PSEi drops 2% to 7,200 level
Trading of Philippine shares resumed on Wednesday after a long All Saints’ Day weekend, with sharp losses reflecting a global market spooked by the prospects of a Donald Trump presidency.
Investors have also been anxious about an impending US interest rate hike and mixed corporate earnings results.
The benchmark Philippine Stock Exchange Index dropped 2.06 percent or 152.40 points to 7,252.40. The wider All Shares index lost 1.63 percent or 71.75 points to 4,326.83.
Stock trading was suspended on Monday and Tuesday, Oct. 31 and Nov. 1 in observance of All Saints Day.
DA Market Securities Inc. said in a market advisory the PSEi followed the lead of weak US markets alongside other Asian stocks, which were all “freaking out” due to the “tightening US election race” as Donald Trump leads the new polls.
Analysts had said that the idea of Trump leading the US elections would be negative for the Asian markets, including the Philippines, but that a win for Hilary Clinton would result in a more stable stock market trend.
“Investors were on their eighth consecutive day of risk-off trading due to concerns over the US Federal Reserve rate hike, over which a decision is due early morning tomorrow [Nov. 3 Manila time], as well as concerns over the US presidential election and mixed corporate earnings,” Joylin Telagen of IB Gimenez Securities said.
“I think this week, the PSEi will be trading sideways within the range of 7,000 to 7,400, with a downward bias. Market direction in the next couple of weeks will be dependent on the outcome of such global events,” she added.
Losses were across the board in Wednesday trade, led by the 3.24 percent slide in financials. The sector shed 58.05 points to close at 1,733.65.
Property followed, posting the day’s second biggest decline of 1.88 percent or 61.58 points at 3,205.06.
Metrobank, Security Bank and BDO posted the largest individual losses of 5.04 percent, 6.90 percent and 2.30 percent, respectively. Other non-banking stocks within the top losers are Ayala Land Inc., Universal Robina Corp., PLDT Inc., Metro Pacific Investments Corp., and SM Prime Holdings Inc., among others.
Trade volume stood at 746.51 million shares, valued at P7.89 billion.
Losers outpaced gainers, 137 to 46, while 49 issues were unchanged.
On Friday, the PSEi dipped 0.54 percent or 40.34 points to 7,404.80, while the broader All Shares index eased 0.47 percent or 20.72 points to 4,398.58.