PSEi sinks below 7,000

Screengrab from https://www.pse.com.ph/

MANILA, Philippines – The local stock index sank to a two-month low and broke past the 7,000 support level on Wednesday, tracking the sluggish risk appetite in Wall Street.

The local stock barometer lost 194.17 points or 2.71 percent to close at 6,966.21. It was the lowest closing since last October 14 when the index finished at 6,946.06.

All counters were in the red, led by the holding firm sub-index which slid by 3.2 percent. The financial and property counters tumbled by over 2 percent while the industrial and services counters declined by over 1 percent.

Turnover amounted to P7.27 billion.

There were nearly four decliners for every single gainer at the market.

Dealers said the market tracked the overnight decline in US stocks. At the same time, investors priced in slower growth prospects for the country.

It was reported that the Asian Development Bank had cut its 2014 gross domestic product growth forecast for the Philippines to 6 percent from 6.2 percent previously while the government’s economic managers were likewise set to review growth targets.

Joseph Roxas, president of local stock brokerage Eagle Equities Inc., said the market was again unduly focused on “doomsday scenarios.”

Among the most battered for the day was AGI which fell by 5.17 percent while URC, AC, Bloomberry, DMCI, Megaworld and Metrobank all faltered by over 4 percent. AP and BPI fell by over 3 percent while PLDT, ALI and SMIC were all down by over 2 percent. BDO, SMPH and EDC fell by over 1 percent.

DA Market Securities said the market may continue to mimic volatility in US markets primarily from tumbling oil prices coupled with the unwinding of positions for end-year and thinning volumes.

“While the retest of major supports 7,000 to 6,900 is open, we are currently seeing attractive values in the market as an opportunity to bargain hunting for portfolio positioning for 2015,” the brokerage said.