The stock market sank anew on Monday, with analysts pointing to falling oil prices and investors unloading risk assets ahead of China’s release of 2015 economic growth data.
The benchmark Philippine Stock Exchange Index (PSEi) shed 114.41 points or 1.77 percent to end the day at 6,335.09, while the wider All Shares dipped 59.12 points or 1.6 percent to close at 3,638.88.
“Investors are in a wait-and-see attitude, especially so that China’s GDP result will be released tomorrow (Tuesday),” said Alexander Tiu, analyst at AB Capital Securities, Inc.
Tiu added that market players want to know whether global volatility traced to China’s economic downturn was real or merely an overreaction.
“Even though China’s economic data is suspected to be manipulated … their GDP result is nonetheless an indicator of the direction as to where the global economy would go,” he said.
Astro del Castillo, president and managing director of First Grade Finance Inc. said sentiment remained poor on account of a continued drop in oil prices, which have fallen to below $30 per barrel.
“Many investors are playing safe. Monday’s drop was triggered by Wall Street’s bleeding last Friday, unabated oil prices reaching its lowest level, and of course, anxiety over China’s GDP result to be released tomorrow [Tuesday],” del Castillo said.
All sub-indices fell on Monday, led by property that fell by 2.43 percent.
Value turnover was P5.58 billion. Losers edged out winners 133 to 39 while 37 issues were unchanged.