Phl stocks plunge on global selloff

MANILA, Philippines - The local benchmark index snapped a brief two-day climb as it plunged below the 7,200 level yesterday due to global selloff.

The Philippine Stock Exchange index (PSEi) plunged 1.58 percent or 115.24 points to settle at 7,160.38 while the broader All Shares index declined 0.90 percent or 38.54 points at 4,227.62.

“The market failed to follow-up on a strong, spectacular recovery in week’s opening trades as sentiments were drawn to the overnight fall in US stocks and a similar reaction by equities in the region this morning,” said Justino Calaycay Jr., analyst at Accord Capital Equities Corp.

All major indexes in Wall Street fell in the red led by the Nasdaq which dropped 1.04 percent.

Asian shares were also down as declining oil prices and a dissapointing China factory survey dampened investor sentiment in the region.

Unlike Monday’s afternoon recovery that reversed what would have been huge losses, the market failed to do the same yesterday due to lack of market moving news locally, Calaycay said.

“Investors wait for better storylines to end the year with a bang,” he said.

All counters closed in the negative territory except for mining and oil firms which gained 1.50 percent or 228.64 points.

Property firms plummeted by two percent or 57.19 points.

Market breadth was again sour as decliners dominated gainers, 108 to 66, while 38 stocks did not changed. Value turnover dropped to P8.89 billion from P10.79 billion the previous day.