PSEi down anew as Brexit worries linger

MANILA, Philippines – Share prices retreated anew yesterday as uncertainty over Britain’s decision to leave the European Union (EU) led to renewed selling, analysts said.

The benchmark Philippine Stock Exchange index (PSEi) declined 49.21 points, or 0.63 percent, to finish at 7,666.69, while the broader All Shares index gave up 20.67 points, or 0.45 percent, to 4,567.28.

All counters closed in negative territory with the industrial and mining and oil sectors leading the decliners.

 Trading volume was thin at P5.14 billion as decliners edged out advancers 94 to 82 while 57 stocks were left unchanged.

While concerns over Brexit are easing, analysts said these have not totally dissipated.

“Investors are still cautious as winds of uncertainty from Brexit remains and most local stocks are still considered overvalued,” he said.

Last week, Britain voted to leave the EU. It made history when majority of British voters voted to leave the EU.

 At the same time, Del Castillo said the market’s consolidation is healthy.

He expects the market to recover after president-elect Rodrigo Duterte takes his oath of office on June 30.

“However, this consolidation mode of our local market is quite healthy. Expect the index to regain its momentum upon the assumption of the new administration,” he said.