Share prices on the Philippine Stock Exchange went on a tailspin Tuesday, losing more than 200 points on the benchmark PSEi as global uncertainty continued to prompt foreign selling
The Philippine Stock Exchange index (PSEi) lost 2.16 percent or 161.45 points to 7,323.44, while the All Shares fell by 2.22 percent or 95.77 points to 4,224.57.
Foreign selling on global uncertainties continued to plague the market, Astro del Castillo, First Grade Finance Inc. managing director, said in a phone interview.
“We continue to succumb to foreign selling, because of the same reasons. There are uncertainties abroad, possible rate hike in the US, problems in Greece, slowdown in China imports affecting their economy, slightly higher peso but still weak, and other factors. It really triggered selling today,” del Castillo said.
There might be some buying in the next few days, possibly even “bouncing back” today or tomorrow.
“The 200-point drop is too deep a loss. So it may bounce back tomorrow or the day after . . . Corporates are still positive in their expansion plans, their bonds and equities raising. So maybe the market will hold in the 7,300-point mark rather than falling to as low as 7,200,” del Castillo noted.
Over the past few days, some analysts noted the PSEi may plumb back to the 7,200 level if it the market fails to hold the major support level at 7,500.
“Having cracked below 7,500, pessimism still prevailed. There is no assurance made on the timing of the Fed’s rate hike,” Grace Cerdenia, research head at online brokerage 2TradeAsia.com, said.
Declines posted by the sectoral indices ranged from 1.38 percent to 3.81 percent, led by property.
The list of actively traded stocks were in the red, including Universal Robina Corp., Ayala Land Inc., Metropolitan Bank & Trust Company, Globe Telecom Inc., Alliance Global Group Inc., Global Ferronickel Holdings Inc., BDO Unibank Inc., SM Investments Corp., and JG Summit Holdings Inc.
Losers led winners 151 to 30, while 35 issues were unchanged. More than 1.105 billion shares, valued at P8.771 billion were traded.