Stocks slide on Turkey woes

The local stock barometer slid to the 7,600 level on Monday as jitters over Turkey spooked regional markets and escalated risk aversion among foreign investors.

The main-share Philippine Stock Exchange index (PSEi) tumbled by 169.71 points or 2.17 percent to close at 7,635,27, tracking the bloodbath across regional markets.

Local stockbrokerage Papa Securities said “trouble has sparked up once again in the global front, but now in Europe instead of China,” noting how the Turkish lira had crashed by as much as 20 percent against the US dollar. This was after US President Donald Trump tweeted about the doubling of metal tariffs on Turkey, further straining diplomatic relations between the two countries.

“While the PSEi itself might not feel a direct negative impact from this, the region as a whole could feel the weight as it reacts to this geopolitical development,” the brokerage added.

At the local market, all counters declined but the steepest fall was seen by holding firms and property counters, which both slid by more than 2.8 percent.

Value turnover stood at P5.17 billion. The market was weighed down by P830.21 million in net foreign selling.

There were 140 decliners that overwhelmed 58 advancers while 39 stocks were unchanged.

Investors sold down shares of large-cap stocks like Ayala Corp., Ayala Land, SM Prime, Meralco and AGI, which all declined by more than 3 percent. SM Investments fell by 2.41 percent, while Metrobank, BDO, Megaworld, Puregold and Metro Pacific declined by over 1 percent.

Notable decliners outside the PSEi included gaming operator Melco, which tumbled by 4 percent, while ATN and TBGI lost 2.13 percent and 1.39 percent, respectively.

Fast-food giant Jollibee bucked the day’s downturn, instead gaining 1.12 percent.