Global uncertainties dampen index anew

MANILA, Philippines – Share prices plunged anew yesterday as investors continued to unload stocks amid global uncertainties and President Duterte’s foreign policy rhetoric.

The benchmark Philippine Stock Exchange index (PSEi) slumped anew by 75.12 points to close at 7,557.34.

Likewise, the broader All Shares index retreated 40.67 points to settle at 4,495.93.

All counters closed in negative territory with the mining and oil index suffering the biggest decline of 2.44 percent.

BDO Capital and Investment Corp. president Ed Francisco said the decline in the market was not due solely to Duterte’s war on drugs and statements lashed against some of the country’s trading partners such as the European Union and the US.

“The Duterte factor is not the main reason. It could be a factor but there’s also the Yellen factor,” Francisco said, referring to Fed chairperson Janet Yellen.

PSE president Hans Sicat said the overall downturn in emerging markets comes in the wake of recent indications of a potential rate hike in the US and volatility in the world oil and commodities markets.

“We have been experiencing net foreign selling in the market in the past weeks but numbers show that this has slowed down following the recent meeting of the US Federal Reserve. Perhaps it is also an indication of fund managers locking in gains, as the PSEi has delivered double-digit returns since the start of the year. Our economic fundamentals remain strong and this should continue to help corporate performance moving forward,” Sicat said.