MANILA, Philippines - The local stock market suffered heavily yesterday, joining global equities in a massive selloff following Britain’s decision to leave the European Union.
The benchmark Philippine Stock Exchange index (PSE) nosedived 100.06 points to settle at 7,629.72 while the broader All Shares index lost 55.80 points or 1.21 percent to end at 4,542.64.
Most of the counters stayed in negative territory led by the holding firms, which declined 1.58 percent and the property index, which shed 1.35 percent.
Total value turnover reached P9.56 billion with declining stocks outpacing advancing stocks by a huge lead: 158 against 37 while 41 stocks were left unchanged.
Analysts said there was no other reason for yesterday’s bloodbath but the move of Britain to leave the EU.
Britain made history yesterday when majority of British voters voted to leave the EU as they believe the EU imposes too many rules on business and charges billions of pounds a year in membership fees for little in return.
The jitters are not likely to ease in the coming days, said Astro del Castillo, managing director of First Grade Finance Inc.
“The local market was also a victim in the global selloff triggered by the Brexit. Investors were trying to outrace each other to the exit. The uncertainties moving forward will haunt the financial markets next week. Expect the PSEi to move sideways toward the 7,450 level,” Del Castillo said.