PSEi slips as global market dives on Brexit vote

Investors Friday dumped local stocks as Great Britain’s vote to leave the European Union heightened risk aversion across regional markets.

The Philippine Stock Exchange index shed 100.06 points or 1.29 percent to close at 7,629.72. All counters fell, led by the financial, holding firms, services and property counters which all slipped by more than 1 percent.

“Brexit (Britain’s exit) it is, after all. This is a surprise to markets. Online polls got it right, bookies and the markets got it wrong,” Citigroup said in a research note.

Citi said financial markets had largely priced out the likelihood for Brexit, with emerging market currencies returning to levels where it was on June 8, just before Brexit fears started to surge. “As such markets now have some re-pricing to do,” Citi said.

Although Brexit is generally seen to have a modest impact on the Philippine economy, financial markets succumbed to global market volatility.

At the local market, total value turnover for the day amounted to P9.56 billion.  There were nearly four decliners for every single gainer.

Investors sold down shares of Megaworld and Semirara, which both fell by more than  3 percent while MPI, FGEN, GTCAP, SMIC and BDO all declined by more than 2 percent.

ALI, the day’s most actively traded stock, fell by 1.93 percent while Metrobank and JG Summit both fell by over 1 percent. URC, Globe and ICTSI also declined.

Among those that bucked the day’s downturn were Jollibee and AC which firmed up by 1.21 percent and 0.35 percent, respectively.

Outside of the PSEi, Philex rebounded by 8.42 percent after the freefall in previous days. Doris Dumlao-Abadilla