MANILA, Philippines –A broad selloff caused Philippine stocks to plunge on Tuesday while banking stocks came under continued selling pressure as investors were rattled by an unfolding banking crisis in the United States.
By the closing bell, the benchmark Philippine Stock Exchange Index (PSEi) fell 2.31 percent, or 151.12 points, to 6,393.33 while the broader All Shares index sank 1.83 percent, or 64.35 points, to 3,454.48.
Jonathan Ravelas, managing director at eManagement for Business and Marketing Services, said bulls would need to defend the 6,300 support area to prevent the PSEi from sliding below 6,000.
The Bankers Association of the Philippines said local lenders were well-capitalized, exceeding requirements set by the government, and had diversified deposits and income sources.
Banks such as BDO Unibank, Metropolitan Bank & Trust Co (Metrobank)., Bank of the Philippine Islands (BPI), China Banking Corp., Philippine National Bank, Rizal Commercial Banking Corp. and Union Bank of the Philippines have no direct exposure to the Silicon Valley Bank (SVB) fin the United States.
Nevertheless, stocks of lenders such as BDO, Metrobank and BPI dropped lower on heavy volume.
COL Financial chief equity strategist April Lynn Tan said investors were adopting a “sell first, ask questions later” mindset.
She added that this opens an opportunity for investors to buy banking stocks at cheaper prices.
SVB fallout: PH bank shares tumble
“Even with Philippine banks’ stronger fundamentals, they could continue to go down due to concerns that things could get worse before getting better,” Tan said in a report to clients.
A total of 968 million shares valued at P6.77 billion changed hands while foreigners were net sellers to the tune of P1.05 billion.
Ayala Land Inc. was the top traded stock as it slipped 0.19 percent to P26.30 per share.
It was followed by International Container Terminal Services Inc., down 3.62 percent to P199.90; BDO Unibank Inc.., down 2.13 percent to P119.40; SM Prime Holdings Inc., down 3.64 percent to P34.40; and Metrobank, down 4.04 percent to P57 per share. INQ
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