Wall St’s sharp slide drags down PSEi

MANILA, Philippines - Share prices plunged yesterday, sending the index below the 7,000-point level as investors unloaded stocks due to Wall St.’s sharp slide.

The Philippine Stock Exchange index (PSEi) plummeted 124.96 points to close at 6,296.82, while the broader All-Shares index retreated 58.59 points, or 1.45 percent, to finish at 3,965.01.

“Wall Street’s descent weighed on local equities as improving labor market conditions continued to solidify the case for an interest rate liftoff,” said Jason Escartin, investment analyst at F. Yap Securities.

The Dow Jones industrial average nosedived 272 points, while the Nasdaq Composite index closed lower by 49 points.

“An early surge in Chinese stocks fizzled out with the Shanghai index struggling to stay afloat or at least keep losses to a minimum. The Hang Seng index in Hong Kong is tracing a similar path,” said Justino Calaycay, analyst at Accord Capital.

Calaycay said it would be good for investors to be patient and wait until the situation improves.

“It is of course tempting to jump into the waters and grab on to what looks like bargain opportunities. However, while this may have been wise counsel about a year-or-two ago, it may not be equally so at this time,” he said.

“We have been harping on the underlying narratives of the market which at the beginning already discounted mainly a weak China, a US interest rate hike, a strong domestic economy and as a consequence therefore, equally strong corporate earnings,” he added.