The local stock barometer slid below the 7,500 level on Tuesday as concerns over the novel coronavirus breakout kept investors at bay.
The main-share Philippine Stock Exchange index (PSEi) tumbled by 118.93 points or 1.57 percent to close at the day’s low of 7,468.70, tracking sluggish regional markets.
Local stock brokerage Papa Securities said the 7,400 support level would be tested, after which the next barrier would be 7,270, the breakout level back in October 2018.
COL Financial chief technical analyst Juan Barredo said the first quarter would likely remain volatile for the market. For one thing, he said the US stock market was quite stretched and due for a correction from overbought levels. The novel coronavirus is likewise seen causing pressure in the near term.
“I’d be bullish but technicals are not in my favor. Right now they are telling us to still be cautious of the market,” Barredo said.
For now, Barredo said it may be best for investors to stick to PSEi component stocks, which would likely be the first to rebound.
“I really feel the biggest danger in this kind of market is illiquidity,” Barredo said.
On Tuesday, all counters ended in the red, led by the mining/oil counter, which lost 2.05 percent. The industrial, holding firm, services and property counters all slipped by over 1 percent.
Total value turnover for the day amounted to P4.44 billion, with net foreign selling pegged at P544.47 million.
There were 121 decliners that overwhelmed 65 advancers, while 42 stocks were unchanged.
The index was weighed down most by SM Prime, Jollibee and PLDT, which all tumbled by over 3 percent.
Megaworld lost 2.58 percent while BBO, Ayala Corp. and URC declined by over 1 percent.
Ayala Land, SM Investments, Metrobank, ICTSI and AGI all slipped by less than 1 percent.
Outside of the PSEi, notable decliners included Cirtek, which slid by 15.37 percent. Philweb and Fruitas both fell by over 7 percent, due to profit-taking.
On the other hand, Metro Pacific and BPI slightly gained.
Non-PSEi stock PXP Energy racked up 7.02 percent, while Manila Water firmed up by 0.78 percent. INQ