The local stock barometer slid below the critical 7,000 support level yesterday as foreigners dumped local equities for the 31st straight trading day amid a global bloodbath widely described as “Red October.”
The main-share Philippine Stock Exchange index (PSEi) tumbled by 116.76 points, or 1.67 percent to close at 6,884.38.
The index hit as low as 6,790.58 for the day but recouped some losses. Nonetheless, this marked the PSEi’s lowest finish since Jan. 3 this year. Local equities have seen consecutive sessions of foreign outflows starting Aug. 30 this year.
“A risk-off tone gripped financial markets, with the rise in [US] treasury yields and fresh concerns over the trade war with China sending US stocks tumbling by the most since June,” BDO Unibank chief strategist Jonathan Ravelas said.
Sentiment was gloomy as the closely-tracked Dow Jones Industrial Index fell by 831 points or 3.2 percent overnight.
“The hunt for Red October is over! It’s finally here!” he added.
Net foreign selling for the day amounted to P861.13 million. Value turnover was P5.42 billion.
Some $1.7 billion in foreign funds have exited the local stock market so far this year.
There were 167 decliners that overwhelmed 39 advancers while 34 stocks were unchanged.
Ty family-led conglomerate GT Capital led the PSEi lower with its 5.49-percent decline.
Conglomerates SM Investments and JG Summit both fell by over 3 percent while Ayala Land, Ayala Corp., Metrobank and ICTSI all tumbled by over 2 percent.
BDO, the day’s most actively traded company, fell by 1 percent along with Security Bank, Metro Pacific and PLDT which also all slipped by over 1 percent.
SM Prime, Globe and URC also weighed down the PSEi.
Outside the main index, third telecom aspirant Now Corp. lost another 15.34 percent after hailing the government to court over the terms of reference for the bidding out of the third telecom slot.
On the other hand, Aboitiz Power added 2.76 percent.
The PSEi has lost a total of 1,674.04 or 19.5 percent so far this year. It has reversed by 2,193.99 or 24.2 percent since hitting a record high of 9,078.37 on Jan. 29, sinking deeper into bear territory.