PHILIPPINE shares have succumbed to heavy selling pressure on Thursday as investors cashed in out gains
amid concerns about the US presidential elections and the potential US interest rate hike in December.
The benchmark PSEi declined by 1.26 percent or 91.49 points to 7,160.91, while the wider All Shares decreased by 0.90 percent or 39.06 points to 4,287.77.
Luis Limlingan, managing director at Regina Capital Development Corp., said the market took cues from the negative sentiment in US market as tensions from the presidential race swept through Wall Street.
“The US market continued on to its 7th day of drop on worse-than-expected employment data, while political concerns linger and Fed holds back rate hikes,” Limlingan said.
“The Federal Reserve, as expected, held interest rates unchanged at 0.25 percent-0.50 percent but signaled an increase in December is a possibility. Much of the focus from the Fed statement fell upon one sentence that was slightly changed from September,” he added.
With the PSEi sinking below 7,300, Limlingan noted hopes of a significant bounce back were “shattered.”
“Also, this signals the continuation of the index’s downtrend pattern that started when a second reaction low or bearish trend was formed during early October,” he said.
More than 904.725 million shares, worth P10.14 billion, changed hands. Losers outnumbered gainers, 127 to 62, while 43 shares were unchanged.
On Wednesday, the PSEi fell by 2.06 percent or 152.40 points at 7,252.40, while the All Shares index declined by 1.63 percent or 71.75 points at 4,326.83.