The PSEi performed as the worst market index among regional peers on Tuesday, plumbing the 6,500 levels and losing more than 1.6 percent intraday as investors worried about more interest rate hikes in the US next year and the uncertainties and risks over the economic and political stewardship of President Rodrigo Duterte in the year ahead.
After sinking to an intraday low of 6,589.69— down 1.85 percent—the PSEi got a a lift from last-minute bargain hunting to close at 6,658.66, down 0.83 percent or 55.47 points.
The wider All Shares decreased by 0.65 percent or 26.80 points to 4,072.85.
Investors are exiting emerging markets like for safer havens, now that the US Federal Reserve made it clear it would raise rates three times in 2017.
The Philippine market was badly hurt among regional markets as investors turn shifted stance to cautious from optimistic due to the uncertainties about the economic and political leadership of the Duterte administration next year, said Justino Calaycay Jr., head of research at A&A Securities Inc.
Ralph Christian G. Bodollo, equity analyst at RCBC Securities Inc., said “the local bourse cascaded further as selling intensified on account of the more hawkish outlook on US interest rates and heightened political uncertainty, both domestic and outside.”
Bodollo said the sellers were mainly offshore funds registering net selling of P1.4 billion, “with SM Investments Corp. losing P204 million after having been unloaded the most.”
Some 1.82 billion shares were traded, amounting to P6.78 billion. Decliners outpaced advancers, 132 to 51, while 42 shares traded unchanged.
On Monday, the PSEi fell by 1.99 percent or 136.58 points to 6,714.13, while the broader All Shares index also declined by 1.44 percent or 59.77 points to 4,099.65.