PSEi down 1.8% on Paris attacks

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The Philippine Stock Exchange index (PSEi) plunged by nearly 2 percent on Monday as markets worldwide reacted to last Friday’s deadly terror attacks in Paris.

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The benchmark index entered the 6,700-point territory, dropping to as low as 6,722 before slightly recovering to close at 6,772.92, down by 124.85 points or 1.81 percent. The wider All Shares index fell by 1.6 percent or 63.87 points to 3,914.43.

Monday’s close was the lowest since August 24, when the PSEi plummeted by 6.7 percent to 6,791.01.

“The number one concern today—adding to the continuing concerns—is what happened to Paris,” said Astro del Castillo, managing director of First Grade Finance Inc.

“That reaction from local and foreign investors is already a glimpse of the impact,” he added.

The Paris attacks, which happened late Friday, left 129 people dead. The coordinated attacks have been claimed by the Islamic State group and raised fears of a new wave of terror.

Asian markets fell on Monday in the wake of the Paris attacks, with airline and travel stocks hit hard.

Noting thin intraday trading, Del Castillo said the local market could bounce back as investors hunt for bargains.

Total traded volume reached 1.2 billion shares on Monday, while value turnover stood at P4.66 billion.

BDO Chief Market Strategist Jonathan Ravelas, meanwhile, said the market was also affected by extended profit-taking “due to increasing possibility of a US interest rate increase in December, mixed earnings results and a weakening China.”

All subindices fell, led by holding firms that declined by 2.13 percent.

Last Friday, the PSEi closed with 0.17 percent dip or a 12.05-point loss to 6,897.77. The All Shares also declined, by 0.72 percent or 28.78 points to 3,978.30.

Tuesday will be the last trading day before a break on Wednesday and Thursday due to the Asia Pacific Economic Cooperation leaders’ summit in Manila. Trading will resume on Friday, November 20.

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