Share prices plunged on Tuesday as investors cut losses, spooked by the statement of Federal Reserve Chair Janet Yellen on raising interest rates in the US.
The main index PSEi plunged more than 100 points intraday, before settling with a 50.56-point loss or 0.64 percent to 7,794.93 at the closing bell. The wider All Shares decreased by 0.55 percent or 25.39 points to 4,636.22.
“The drop today was due to concerns and fears of rising interest rates in the US. The odds are now in favor of a rate hike this year after the recent statement from the Fed. As a result, Asian markets declined, including the Philippines,” Lexter Azurin, assistant vice president and research head at Unicapital Securities Inc., said in a text message.
“The market is long overdue for a correction and we knew this as a healthy correction, giving some investors also a good buying opportunity,” he added.
Over 1.215 billion shares, valued at P10.91 billion, changed hands. Losers outnumbered gainers, 124 to 73, while 46 issues were unchanged.
On Friday, the PSEi declined by 0.12 percent or 9.05 points to 7,845.49, while the All Shares dipped by 0.05 percent or 2.18 points to 4,661.61. The market was closed on Monday, August 29, in the observance of National Heroes Day.