The Philippine Stock Exchange index followed the world-wide downtrend caused by fears that dropping oil prices will cause instability.
The PSEi lost more than a hundred points to close at 7,160.38 points on Tuesday, down 1.58 percent or 115.24 points from Monday. The All Shares index likewise went down 0.90 percent or 38.54 points to 4,227.62.
Most of the Asian markets were down on Tuesday’s session, also following the overnight plummet in the US markets: Dow Jones declined by 99.99 points, S&P 500 lost 12.70 points, and Nasdaq was robbed off 48.44 points.
Justino Calaycay, analyst at Accord Capital Equities Corp., said that the market was in the red on profit-taking after a two-day gain.
“The market failed to follow-up on a strong, spectacular recovery in week’s opening trades as sentiments were drawn to the ovenight fall in US stocks and a similar reaction by equities in the region this morning,” Calaycay said.
“The PSEi dropped as much as 94.31 points in early trades when some bulls entered the picture providing support at the 7,180-line. The bears have managed to hold dominance however going into the final hour of morning trades,” he added.
He said that for the following days, investors will be looking for “better stories to end the year with a bang.” He said a positive push in the global markets may pull the Philippine market up and in the succeeding days towards yearend.
Calaycay noted that though doubts have surfaced in the market, prospects of bull in the long term is still valid on the positive broader economy next year.
He said the market is seen to trade in a 7,000 to 7,300 points band in the following days.
Except for Mining and Oil that gained 228.64 points or 1.50 percent to 15,438.25, the sectoral indices lost on Tuesday. Financials went down 1.35 percent or 22.99 points to 1,675.09; Industrial declined by 1.05 percent or 125.04 points to 11,789.93; Holding Firms plummeted by 1.94 percent or 123.72 points to 6,258.48; Services decreased by 0.36 percent or 7.59 points to 2,099.47; and Property slumped 2.0004 percent or 57.19 points to 2,801.77.
Among the most active, only BLOOM, TEL and NIKL were the big gainers while the others declined. The most active losers were SMPH, URC, BDO, ALI, AC, MEG and DMC.
Total shares traded amounted to 2.06 billion shares, while value turnover stood at P7.05 billion. Decliners outnumbered advancers — 113 to 69 — while the unchanged was at 38.
On Monday, the benchmark stock index gained 51.41 points or 0.71 percent to close 7,275.62, while the wider All Shares added 27.88 points or 0.66 percent to 4,266.16.