Several uncertainties from inside and outside the county prolonged the downtrend of the Philippine equities market, pulling the benchmark index down to the 5,700-point level after a slight recovery.
In a phone interview, Harry Liu, president of Summit Securities Inc., said that the market still suffers from some local and global factors, including the looming US Federal Reserve tapering of its bond-buying program, the record power rate hike by Manila Electric Co. (Meralco), and the aftermath of Super Typhoon Yolanda.
Liu explained that the Meralco rate hike will surely affect the country’s inflation rate, of which everyone seems to be afraid about.
The Philippine Stock Exchange index (PSEi) slumped heavily after a slight recovery on Wednesday, falling by 2.14 percent, or 126.21 points to 5,762.53, while the broader all-shares index dipped by 1.91 percent, or 68.90 points to 3,593.48.
All the sectoral indices ended on the red side with holding firms plummeting by 2.64 percent, or 143.39 points to 5,282.98, followed by financials, which shed 2.43 percent, or 34.85 points to 1,397.27.
Industrial, on the other hand, slipped by 2.28 percent, or 196.10 points to 8,405.15, while the services counter snapped by 1.35 percent, or 25.10 points to 1,834.12. Property also registered a significant decline after losing by 1.07 percent, or 23.47 points to 2,173.08, while mining and oil fell by 0.65 percent, or 77.34 points to 11,852.19.
Total value turnover stood at P9.4 billion with decliners still edging advancers, 120 to 36.
Some of the top losers on Thursday were Metropolitan Bank and Trust Co., Philippine Long Distance Telephone Co., Puregold Price Club Inc., Ayala Corp., Ayala Land Inc., Alliance Global Group Inc., DMCI Holdings Inc., Universal Robina Corp., SM Investments Corp., Metro Pacific Investments Corp., Megaworld Corp., Emperador Inc. and Meralco.
Pressured by a sluggish regional market trend, Philippine shares remained in bear market territory on Wednesday, although managing to cross green territory.
The PSEi slightly recovered from a steep decline on Tuesday, gaining a measly 0.04 percent, or 2.34 points to 5,888.74, while the wider all-shares index was left on the red side, losing by 0.12 percent, or 4.20 points to 3,608.38.