PSEi slides to 6,300 levels

MANILA, Philippines–Local stocks fell sharply on Monday, tracking the weak sentiment across regional markets which were hit anew by jitters over the US Federal Reserve’s tapering of easy money policy.

Unable to stay afloat the stubborn 6,500 barrier, the main-share Philippine Stock Exchange slid by 181.57 points or 2.79 percent to close at 6,318.91.  Stock markets across the region were mostly in the red as improving US jobs data increased expectations of an imminent unwinding of the US Fed’s quantitative easing or bond buyback activities.

At the local market, all counters faltered but the most battered were the industrial and holding firm counters which both slid by over 3 percent.

Value turnover, however, was still thin at P5.49 billion.  There were four decliners for every single gainer at the market.

Jose Mari Lacson, head of research at stock brokerage Campos Lanuza & Co., said there were still foreign funds dumping local equities. “You could say that the selldown two weeks ago was overdone but at the end of the day, there are fundamental reasons why they are exiting.”

Lacson said the main index may again slide back below 6,000 but like in the previous fall, any decline close to the 5,900-6,000 may attract demand.

The day’s biggest index decliners were DMCI (-5.78 percent) and AP (-5.68 percent) while RLC, SMIC, AC, SMC and URC all faltered by over 4 percent. MPI, JFC and Globe fell by over 3 percent.