The local stock barometer fell below the 6,300 mark on Wednesday as global growth worries dragged emerging market stocks to a seven-year low.
The Philippine Stock Exchange index lost 97.44 points or 1.53 percent to close at 6,259.61, weighed down mostly by property stocks.
Across the region, stock markets were bludgeoned as oil prices—which have now dropped below the $28 mark—escalated concerns on the global economy.
“Bearish sentiment persisted overnight. US equities failed to hang on the futures rally during yesterday’s Asian trading hours, oil prices fell another 2-4 percent, industrial metals prices weakened further, US Treasury yields remained near recent lows, the risk-averse euro and Japanese yen outperformed, and emerging market (EM) currencies resumed weakening versus the dollar,” Citigroup said in a research note on Asian EM on Wednesday.
“We believe our bearish stance for EM remains appropriate,” the Citi note said, adding that the latest batch of economic data out of the region continued to highlight downside growth risks.
At the local market, the property counter slid by 3.93 percent while holding firms declined by 2.12 percent. Only the services counter eked out a modest gain.
Property stocks are seen to be next in line for investors’ selling program. “First was gaming, second telecoms and ICTSI, third is property. Last would be banks and conglomerates,” said Jose Mari Lacson, an analyst at stock brokerage Campos Lanuza & Co.
A regional rebound on Tuesday proved short-lived as concerns over China and the oil supply glut again took centerstage. Doris Dumlao-Abadilla