PHILIPPINE stocks shed 200 points on Tuesday, diving to 5,800 from 6,008 points and nearly negating all the gains earned since the start of the year. It was the lowest since August 28 this year when the benchmark index dropped to the 5,738.06 level.
The steep decline was attributed to the effects of Super Typhoon Yolanda, which forced some investors to stay away from the market.
“Actually, some are saying they have factored in the external uncertainties but it seems that this declining trend is due to Super Typhoon Yolanda,” said investment analyst Freya Natividad of Papa Securities Corp.
“We broke down from the support. It had been a momentum. It’s [been]negative since we broke down. The sentiment has dragged the overall market’s performance,” she added.
Philippine shares showed a glimmer of hope in the first ten minutes of trading yesterday, opening with gains of a little over 5.0 points but wilted soon after.
“It [Philippine stocks] drew a downhill path from that point onwards, threatening to erase all the year’s gains as trading resumed off the noon break,” Calaycay said.
The Philippine Stock Exchange index (PSEi) closed at 5,886.40, while the broader all shares dipped 1.85 percent, or 68.22 points to 3,612.58.
All indices slumped significantly with property counter losing by 3.95 percent, or 91.76 points to 2,229.19, followed by the holding firms, which went down by 2.31 percent, or 128.22 points to 5,409.64.
Financials also shed major losses, falling by 1.49 percent, or 21.76 points to close at 1,440.32, as well as mining and oil, which slipped by 1.32 percent, or 159.41 points to 11,908.86. Industrial, on the other hand, registered a 1.38-percent drop, or 119.27 points to 8,554.24, while services shed by 0.40 percent, or 7.36 points to 1,855.11.
The total value turnover stood at P7 billion with losers still above gainers, 124 to 31.
Some of the top losers on Tuesday were BDO Unibank Inc., Metropolitan Bank and Trust Co., Ayala Land Inc., SM Investments Corp., Alliance Global Group Inc., Puregold Price Club Inc., Universal Robina Corp., Ayala Corp., Manila Electric Co., Megaworld Corp., JG Summit Holdings Inc. and Bank of the Philippine Islands.
Jun Calaycay of Accord Capital Equities Corp. said that overseas, Standard and Poor’s advanced to yet another record and Dow Jones stayed above 16,000 on thin gains as investors balanced the timing of the Federal Reserve’s tapering on one hand and the oncoming budget talks on the other.
European stocks were also higher, while Early Asia-Pacific trades showed that both the Australian and New Zealand markets opened the day marginally higher.