PHILIPPINE shares continued to bear the brunt of global woes, particularly the devaluation of the Chinese yuan and concerns over the US rate hike that prompted a selloff from foreign investors on Monday.
The China and US stories are on top of the seasonal slowdown during the “Ghost Month” of August.
Investors were also dismayed by the apparent economic slowdown in the second quarter of 2015.
“Local shares dropped on the lower economic performance of manufacturing, exports and agriculture in the second quarter,” said Astro del Castillo, managing director of First Grade Finance Inc.
The PSEi declined by 0.97 percent or 71.60 points to 7,336.84, while the All Shares dropped 1.26 percent or 53.56 points to 4,191.43.
“It is still the old concerns about China and the impending rate hike, causing investors to stay on the sidelines. Near-term risk lies at 7,000,” Jonathan Ravelas, BDO chief market strategist, said in a text message.
Mining and oil was the most-hit sector on Monday, which plummeted by 5.47 percent or 642.5 points to 11,104.59, with all sectors posting losses. The sector was dragged by the selloff in stocks of Semirara Mining and Power Corp., which dived by 6.56 percent or 8.50 to close P121 each.
Besides Semirara, among the most active stocks were SM Prime Holdings Inc., sole gainer that registered a 0.10-percent increase during the session. The top losers included Universal Robina Corp., Philippine Long Distance Telephone Company, BDO Unibank Inc., Metropolitan Bank and Trust Company, Bloomberry Resorts Corp., GT Capital Holdings Inc., SM Investments Corp. and D&L Industries Inc.
More than 1.588 billion shares, valued at P6.24 billion, were traded. Decliners outnumbered advancers, 144 to 38, while 43 shares were unchanged.