THE LOCAL stock barometer tumbled Monday, tracking the downturn across regional markets as major oil-producing countries failed to strike a deal on an output freeze.
Slipping for the second session, the Philippine Stock Exchange index (PSEi) shed 77.9 points or 1.06 percent to close at 7,243.40.
All counters ended in the red, led by the financial, industrial, services and property counters, which all slumped more than 1 percent.
Eighteen oil-exporting nations met in Doha over the weekend with the goal of stabilizing output in order to curb steep oil price declines. But no deal was hatched as Saudi Arabia demanded that Iran, which had just entered the market, be compelled to join any production cut pact.
“The expectations of a supply side agreement to support oil prices were dashed,” Citigroup said in a research note Monday. “Bearishness in energy prices is spilling over and may hurt risk sentiment.”
But Citigroup said it would not recommend chasing the risk-negative moves. “Continued positive surprise from China’s economic activity data is likely to support risk sentiment,” it said.
“After a strong rally last week, expect the index to face increased selling pressure this week as prices approach key resistance. Technical divergences are something to watch out for as momentum indicators continue their weakness despite last week’s rebound,” said Luis Gerardo Limlingan, managing director at local stockbrokerage Regina Capital Development Corp.
There were 52 advancers, which were overwhelmed by 126 decliners, while 49 stocks were unchanged during Monday’s trading at the local bourse. Doris Dumlao-Abadilla