Stocks plummet to lowest in one year

MANILA, Philippines — The stock market plunged to a fresh one-year low yesterday as heavy selling ensued due to lack of market catalysts, analysts said.

The Philippine Stock Exchange index (PSEi) nosedived 119.11 points, or 1.54 percent, to close at 7,600.36, while the broader All Shares index shed 59.32 points, or 1.26 percent, to close at 4,617.77.

Yesterday’s close was the lowest level since the benchmark index finished at 7,588 on April 24, 2017, according to Regina Capital Development Corp. business development head Luis Limlingan.

“Philippine markets continued to sell down as investors continued to stay on the sidelines without any catalysts from regional markets,” Limlingan said.

Asian stocks were mostly stable yesterday compared to previous sessions, but it was not enough to stop the bloodbath in local share prices.

Tuesday’s finish puts the PSEi on a second consecutive day of decline.

Most local counters shed more than one percent, except for the services sector which lost 0.72 percent.

Leading the bloodbath were property firms, with the sector dropping 2.03 percent, followed by the mining and oil and industrial counters which decreased 1.80 percent and 1.78 percent, respectively.

Market breadth was negative as decliners crushed advancers, 143 to 68, while 40 stocks were unchanged.

Value turnover improved slightly from the previous day, but remained thin at P6.05 billion.

“Without much positive news in the short-run, the PSEi may trade sideways along its present 7,500-7,800 range. Besides, a quick recovery may be weighed down by negative economic and political factors (both domestic and external). Bargain hunting should, thus, be selective and tempered by longer holding periods,” according to FMIC and UA&P Capital Markets Research.