Index plummets on global growth concerns

MANILA, Philippines – Local stocks faltered big time on the first trading day of the Chinese Lunar New Year behind continuing worries of a global economic slowdown.

Fresh from a break on Monday in celebration of the start of the Chinese New Year, the Philippine Stock Exchange index (PSEi) started off sluggish, immediately retreating to the 6,600 level in the morning trade. 

At the closing bell, the PSEi plummeted 1.89 percent or 127.70 points to end at 6,637.43, while the broader All Shares index declined 1.34 percent or 51.84 points to 3,816.77.

Analysts attributed yesterday’s selloff to global growth concerns that sent Asian markets spiraling downward.

Locally, all sectors finished in the red, with the exception of mining and oil firms which eked out a 7.14 percent gain.

Property and financial firms each declined by more than two percent, while the rest of the sectoral indices lost more than one percent each.

A report by DA Market Securities Inc. said initial supports are now at 6,300 to 6,600.

“It is important to monitor if current correction will create bottoming signals. If 6,084/6000 are broken, lower supports at 5,700 or even 5,500 may be tested,” it said.

Market breadth was negative yesterday with decliners trumping advancers, 119 to 61, while 30 stocks were unchanged.

Value turnover was thin at P3.48 billion.