Resorts World attack sends negative sentiment to stock market

The benchmark Philippine Stock Exchange index (PSEi) succumbed to negative sentiment yesterday in the wake of an overnight attack at the Resorts World Manila casino and hotel complex near the country’s main air gateway.

After gains early in the session, the PSEi closed down 0.25 percent or 19.83 points to 7,907.66. The broader All Shares index was down 0.3 percent to 4,716.13.

Resorts World shareholder Travellers International Hotel Group Inc. (trading under the stock symbol RWM) was down 7.4 percent to P3.13 a share .

The attack was initiated at around 12 a.m. Friday by a lone gunman who fired into the air and set gaming tables on fire. Scores were injured and more than 30 reportedly died from suffocation. Among the dead was the gunman, who committed suicide by burning himself, the Philippine National Police (PNP) said.

The PNP added the individual had no links to the Islamic State, despite early reports.

This was a relief for investors, who feared broader implications on the business sector and tourism if the attack was terror-related. Nevertheless, many investors decided to stay on the sidelines amid the tragic event yesterday.

“At the market’s close, investors turned into profit-takers as the market fell by 0.25 percent as main heavyweight SM was sold down by roughly 2 percent,” Luis Gerado Limlingan, managing director at Regina Capital Development, said.

“The main PSEi constituent accounts for more than 10 percent of the index. Other investors sold down gaming stocks in relation to the shooting incident last night,” he added.

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