PSEi tumbles below 7,500

The local stock barometer fell below the 7,500 mark Monday as Greece’s rejection of new austerity measures spooked regional markets.

The Philippine Stock Exchange index (PSEi) lost 80.15 points or 1.06 percent to close at 7,455.15. Across the region, stock markets faltered as investors turned risk-averse while pondering on Greece’s uncertain future in the European Union.

The 7,500 mark was a key support level, the collapse of which is seen to lead to tests toward 7,000.

There were four times more decliners (131) than advancers (31) in the local stock market.

In a closely watched referendum, Greeks voted resoundingly to reject new austerity measures demanded by creditors, dimming hopes for an international bailout. Last week, Greece became the first developed country to default on its $1.7-billion debt to the International Monetary Fund (IMF).

“The market succumbed to selling pressure as it reacted to the majority of Greeks voting no to the conditions set by EU (European Union),” said Luis Gerardo Limlingan, managing director at Regina Capital Development. Doris Dumlao-Abadilla