The local benchmark stock index on Thursday ended at 6,114 points after slipping 6.75 percent, the steepest dive for the year since its 5-percent drop on Tuesday.
The Philippine stock market index as of yesterday lost about 1,000 points in a span of two weeks, mainly caused by two consecutive declines over two trading days. There was no trading on Wednesday to give way to Independence Day celebrations.
Juanis Barredo, COL Financial technical analyst, said in a phone interview that the almost 7 percent free fall was caused by profit taking as interest rates surged in some countries, especially across Asia.
Also feeling the pinch from the profit-taking were the country’s currency and bonds, Barredo said.
“I don’t think the economic data generated that much damage. It is more on tandem with what’s happening in the foreign market, potentially on interest rates,” he added.
Barredo assured that the fall of the index is nothing to be scared about, because stocks will become cheaper and people will eventually buy slowly until equities regain better prices.
Astro del Castillo of First Grade Finance Inc. attributed the market slide to “jitters from the foreign markets” and the “changing investment landscape.”
The Philippine Stock Exchange index (PSEi) made another significant drop by 6.75 percent or 442.57 points to 6,114.08.
The broader all-shares index was down by 5.63 percent or 228.84 points to 3,834.87.
All indices also dropped, with properties having the steepest at 7.30 percent or 190.88 points to 2,442.74, while holding firms registered a 6.64-percent decline or 389.22 points to 5,472.56.
Services dived by 6.40 percent or 126.95 points to 1,856.69, while mining and oil dipped by 3.32 percent or 533.32 points to 15,519.89.
Also, financials subtracted 105.73 points or 6.27 percent to 1,580.46, while industrials erased 544.29 or 5.41 percent to 9,507.88.
There were only 18 gainers, with 182 decliners. Unchanged issues reached 24. Value turnover was more than P16 billion.
The 10 most active companies that registered 3 percent to 8 percent decreases in their prices were Banco de Oro, SM Prime Holdings Inc., Ayala Land Inc. and Alliance Global Group.
“We’ll continue to look at the international markets as it affects the local index the most. Those are still the triggering factors,” del Castillo said.
On Tuesday, the PSEi dived 318.95 points, or 4.64 percent, to 6,556.65.
The wider all-shares index plunged also on Tuesday by 165.90 points or 3.92 percent to 4,063.71.