Strong selling pressure drags PSEi down by 1.33%

The local stock market returned to the doldrums on Tuesday ahead of the government’s release of key local trade and economic growth data.

The stock barometer fell by 94.34 points or 1.33 percent to close at 6,977.16, tracking sluggish regional markets.

“The PSEi’s recovery [on Monday] was short lived as it continued lower today. Selling pressure picked up even further which drove buyers away. The main index ended below the psychological support of 7,000 which may trigger more selling in the coming days,” said Christopher Mangun, head of research at AAA Equities.

“The lack of optimism from investors may be coming from the lack of positive news from companies with regards to their fourth quarter performances,” he said.

He said the next major support for the PSEi would be at 6,740.

“The bloodbath continued for second and third liners as investors are now unloading positions at a massive scale,” he said.

All counters ended in the red. The mining/oil counter was the most battered with its 5.37 percent decline, while the financial, holding firm, services and property counters all lost over 1 percent.

Total value turnover for the day amounted to P11.6 billion. There was P504 million worth of net foreign selling.

There were 209 decliners that overwhelmed 29 advancers, while 31 stocks were unchanged. —DORIS DUMLAO-ABADILLA INQ

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