Stock index falls below 6,000 points

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The local stock market index fell below the 6,000-point mark after major markets failed to recover from the gloom brought about by latest move of the US Federal Reserve to further taper its bond-buying program.

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The Philippine Stock Exchange index fell by 2.15 percent, or 129.29 points to 5,886.01, while the wider all-shares index declined by 1.82 percent, or 66.61 points to 3,589.82. Elizabeth Abadillo of Angping and Associates Securities Inc. said in a text message that continuous foreign selling keeps dragging the market down.

“Foreign selling continues due to big dropped in Dow Jones last night [on Monday]and all Asian markets went down too,” she specified.

According to her, the pessimism within global and regional markets is still reverberations to the US Fed’s decision to proceed with its tapering, choosing to cut the pace of it monthly asset purchases by another $10 billion to $65 billion beginning in this month.

All sectoral indices also posted major losses with property counter having the largest drop, going down by 3.44 percent, or 79.90 points to 2,242.81, followed by mining and oil, which plummeted 2.42 percent, or 331.46 points to 13,367.65.

Holding firms slumped by 2.33 percent, or 126.04 points to 5,280.11, and services lost 1.69 percent, or 31.30 points to 1,824.99. Industrial also had a significant drop, sliding by 1.41 percent, or 124.46 points to 8,716.00, while financials slipped by 1.39 percent, or 20.75 points to 1,469.20.

Total value turnover changed a bit, standing at P6.7 billion toward the end of the session. Losers beat gainers, 133 to 29, while 30 issues were unchanged.

Some of the top losers on Tuesday were Bank of the Philippine Islands, Philippine Long Distance Telephone Co., Universal Robina Corp., Alliance Global Group Inc., SM Prime Holdings Inc., Megaworld Corp., Aboitiz Power Corp., DMCI Holdings Inc., SM Investment Corp., Ayala Land Inc., Ayala Corp., Metro Pacific Investments Corp. and Robinsons Retail Holdings Inc.

Asian stocks were in a bloodbath on Monday, enough reason to pull down sensitive Philippine shares during the first trading day of the week.

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