Given the pressure from the tumbling of US and Asian markets and peso depreciation, stock investors continued to take profits on Tuesday that pushed the index below 6,600 points.
Harry Liu, president of Summit Securities Inc., said that the market slide was caused by investors taking their profits and “sheer pressure from markets abroad.”
“The market is now on oversold level and has reached a strong support level in 6,600 for now,” he said in a phone interview.
“But next week, you would see some rally in the market . . . expect medium term [market performance]to consolidate,” Liu added.
Astro del Castillo, managing director of First Grade Finance Inc., said that there is also continued realignment of investment portfolios, and that investors tend to “stop buying” shares and “focus on corporate funds” instead.
But he agreed with Liu, saying that further consolidation is seen for the next few days.
“It’s alarming because stocks are falling . . . but there will be consolidation in the market,” del Castillo also said in a phone interview.
On Tuesday, the Philippine Stock Exchange index (PSEi) plummeted by 1.33 percent, or 89.91 points to 6,673.47, while the wider all-shares index was down by 1.17 percent, or 48.76 points to 4,128.11.
All counters slightly dipped, with financials retreating big time—2.47 percent, or 42.71 points to 1,686.02—while industrials decreased by 0.52 percent, or 53.56 points to 10,267.27.
Holding firms, however, was only down by a mere 0.02 percent, or 1.03 points to 6,038.32, while services counter plummeted by 3.08 percent, or 61.80 points to 1,942.65.
Mining and oil also slumped by 0.47 percent, or 78.18 points to 16,558.76, while property declined by 1.26 percent, or 34.67 points to 2,708.10.
Manila Electric Co. was the only share that registered a gain among the most actively traded stocks in the market.
SM Investments Corp., Puregold Price Club Inc., SM Prime Holdings Inc., Philippine Long Distance Telephone Co., BDO Unibank, Metropolitan Bank and Trust Co. (Metrobank), Alliance Global Group Inc., San Miguel Corp. and Cosco Capital Inc. were among the most active stocks that registered declines.
Decliners beat advancers, 123 to 53, while unchanged shares stood at 41.
Referring to the gross domestic product growth that lifted equities last week, del Castillo said that the market will be in a better position once foreign markets regain their ground.
On Monday, the PSEi ended at 6,763.38, registering a 3.68-percent fall, or by 258.57 points. Meanwhile, the broader all-shares index dipped by 2.68 percent, or 115.16 points to 4,176.