CONCERNS about domestic and external developments continued to hound Philippine shares on Monday, pulling the bellwether PSEi back to the 7,600 territory.
The PSEi lost 1.18 percent or 91.14 points to 7,632.46, while the All Shares also fell by 1.09 percent or 50.11 points to 4,536.60.
Harry Liu, president of Summit Securities Inc., noted “there is still much concern” among investors in terms of both local and foreign developments.
“There is still much concern, and investors are looking at developments here and abroad. On the international side, investors are looking at the US elections as it can bring about a lot of possible policy changes,” Liu said.
On the local scene, investors are concerned about President Rodrigo Duterte’s intent to develop stronger trade and economic relations with China and Russia.
“Our administration is showing a different approach on the political and economic side. The President is opening doors to Russia and China in terms of economy and trade,” Liu noted.
“But as of now, there is no drastic change in policy. Investors are just on a cautious stance… I think in the long-term, I’m still very positive about the market,” he added.
President Duterte on Monday said he was considering visiting China to open up all avenues of trade with the world’s second largest economy after the US. The Philippines has a long-standing maritime dispute with China.
Liu claimed the possible interest rate hike in the US later this year isn’t likely to douse the bright prospects for the Philippine market, saying the remains shielded by strong economic fundamentals against global hiccups.
Also, markets expect the Fed to raise interest rates at the barest minimum.
Some 1.29 billion shares were traded, valued at P7.22 billion. Decliners outnumbered advancers, 123 to 62, while 45 issues were unchanged.
PSE President Hans Sicat, for his part, said that the market is experiencing net foreign selling.
“We have been experiencing net foreign selling in the market in the past weeks, but the numbers show that this has slowed down following the recent meeting of the US Federal Reserve.
“Perhaps it is also an indication of fund managers locking in gains, as the PSEi has delivered double-digit returns since the start of the year,” Sicat said.
“Our economic fundamentals remain strong and this should continue to help corporate performance moving forward,” he added.
On Friday, the PSEi broke a four-day winning streak. It declined by 0.50 percent or 38.75 points to 7,723.60. The All Shares decreased by 0.36 percent or 16.34 points to 4,586.71.