The Philippine stock market nosedived to 6,700 points at the start of the trading week Monday.
Summit Securities Inc. President Harry Liu in a phone interview blamed the 300-point drop on the freefall in the markets in the United States and Japan and the depreciating peso.
Liu said the local market is under medium-term correction stage and on “support level as of the moment.”
President Francisco Liboro of PCCI Securities said the market would still undergo a correction stage even if the Philippine stock exchange index (PSEi) dipped below 6,800 points.
“We see support trying to hold at 6,800. Then 6,500 is the next target. Even if it hits 6,500, I won’t call it a bear market. It will still be just a correction—a much needed correction,” Liboro said.
He assured that the declines are just the result of market correction, which “is healthy.”
After a slight recovery last week, the PSEi ended at 6,763.38, registering a 3.68-percent fall, or 258.57 points. The broader all shares dipped as well, by 2.68 percent, or 115.16 points to 4,176.
All issues were down, with property diving 4.96 percent, or 143.12 points to 2,742.77. Mining and oil also decreased by 3.72 percent, or 643.19 points to 16,636.94.
Financials declined by 3.80 percent, or 68.28 points to 1,728.730 while industrials dipped 290.34 points, or 2.74 percent to 10,320.83.
Holding firms and services both slumped: Holding firms were down by 2.88 percent, or 179.28 points to 6,039.35, and services had a 2.82-percent slide, or 58.08 points, to 2,004.45.
GT Capital Holdings Inc. and Puregold Price Club Inc. were the only ones on the plus side among the 10 most active traders.
The most active losers were SM Investments Corp., Metropolitan Bank and Trust Company (Metrobank), SM Prime Holdings Inc., Ayala Land Inc. (ALI), Alliance Global Group Inc., Philippine Long Distance Telephone Company (PLDT), Ayala Corp. and LT Group Inc.
Losers outnumbered gainers, 138 to 33, while 33 issues were unchanged.
KRISTYN NIKA M. LAZO