PHILIPPINE shares slumped to the 6,800-point territory on Monday as investors were unsettled by a lack of catalysts and uncertainty about the timing of a US interest rate hike.
The Philippine Stock Exchange index (PSEi) fell by 1.47 percent or 101.96 points to close at 6,815.59. The broader All Shares slipped 0.97 percent or 38.63 points to 3,952.45.
Many investors pulled out of the market mostly on the impending Fed rate hike, Aristotle Reyes Jr., equities trader at UPCC Securities Corp., said.
“The US Fed hike . . . was expected this month. But when they opted to leave the rates unchanged, people couldn’t seem to move on. The uncertainty is still there,” Reyes said.
Jonathan Ravelas, BDO chief market strategist, said: A”lack of fresh incentives and a lack of direction continue to keep investors on the sidelines. Should prices fall below the 6,800 level, the market could fall further toward the 6,000 to 6,500-point level in the near term.”
All subsectors posted losses in Monday’s session. Industrials dropped 1.71 percent or 183.54 points.
Ionics Inc. gained 21.15 percent or P0.66 per share—the biggest and most active advancer, followed by GT Capital Holdings Inc., which advanced 2.02 percent or P25 apiece. Ionics has been getting a boost due to speculation about a partnership with Canadian tech firm LeoNovus Inc. on a geo-distributed cloud in the Philippines.
More than 959.691 million shares, amounting P5.712 billion, were traded. Decliners outnumbered advancers 116 to 60, while 43 issues ended unchanged.