Index retreats as US shutdown, Hanjin default add to worries

MANILA, Philippines — The 8,000 level remained an elusive mark for the stock market as share prices retreated yesterday behind struggling financial stocks.

The Philippine Stock Exchange index (PSEi) fell 1.01 percent, or 81.14 points, to close the week on the red at 7,904.09.

The broader All Shares index likewise saw a 0.72 percent or 34.76-point decline to settle at 4,730.15.

Regina Capital’s Luis Limlingan said investors took money out as the index neared the 8,000 level, with the US still in shutdown and a huge default affecting the banking industry.

The PSEi on Thursday closed near the 8,000 level at 7,985.23 and expectations were for the market to breach the mark yesterday following a two-day rally.

“Some obvious headwinds preventing us from cracking well past 8,000 – financials getting hit as five of the largest Philippine banks are firefighting the biggest corporate default in the country’s history, reaching for an exposure of $412 million, after local shipbuilding unit of Korean conglomerate Hanjin recently declared bankruptcy,” Limlingan said.

Financials plunged by 2.53 points, followed by property which lost 1.15 points.

All other indices, except for industrial, finished in the negative territory.