Philippine stocks waded deeper into bear territory on Wednesday, with the benchmark index losing another 2.3 percent as fearful investors continued to dump stocks over global recession worries and the falling peso.
Stock brokers said the pace of selling had slowed from Tuesday’s bloodbath, which saw the Philippine Stock Exchange Index (PSEi) plummet nearly 4 percent, amid early estimates on the damage to agriculture caused by Typhoon Karding.
On Wednesday, the benchmark measure fell 2.33 percent, or 140.39 points, to 5,879.68 while the broader All Shares index lost 2.12 percent, or 68.59 points, to 3,165.64.
One retail-focused broker described panic selling from many clients over the past two sessions.
“Normally, they give a [sell] price. But now, they just tell us to sell at the market at the best price available,” he told the Inquirer.
Market volume, removing block trade transactions, was also lower on Wednesday versus the previous session as 815.8 million shares valued at P6.8 billion changed hands. Net foreign selling hit P588.99 million, data from the stock exchange showed.
Joseph Roxas, president of stockbrokerage house Eagle Equities Inc., said some of the market panic stemmed from recent statements by Rep. Joey Salcedo that the Philippine peso could plunge further to P68 against the dollar.
“Those who have extra money might be buying the dollar or maybe those who aren’t thinking of buying dollars are just selling anyway,” Roxas said.
Meanwhile, Roxas said the PSEi was nearing the key support area of 5,700, which could lure bargain hunters.
Roxas said he preferred companies earning from exports, renewable energy firms already producing power, and digital-focused gaming firms that could capture players following the demise of e-sabong.
Luis Gerardo Limlingan, head of sales at stock brokerage house Regina Capital Development, also expected the 5,700 level to hold in the near-term. His top picks include dividend-paying stocks such as power companies and telecommunications providers.
“The [dividend] yield is 5 to 6 percent, depending on the price you get,” he said.