PSEi falls on Wall Street bloodbath

THE LOCAL stock market returned to the doldrums on Thursday as regional investors were unnerved by the overnight bloodbath in Wall Street.

The Philippine Stock Exchange index lost 85.37 points or 1.32 percent to close at 6,408.76, tracking the slump seen in most regional markets.

On Wednesday, the closely-watched Dow Jones Industrial fell by 364.81 points or 2.21 percent on concerns that sagging economic growth in China and other emerging markets would gnaw on the US economy. Volatile commodity prices also dampened sentiment.

At the local market, the PSEi was weighed down by the property counter which fell by 2.46 percent while the holding firm, services and mining/oil counters likewise slipped.

Only the financial counter firmed up, lifted by Bank of Tokyo-Mitsubishi’s deal to buy into Security Bank at a hefty premium.

Value turnover for the day amounted to P5.25 billion. There were over five decliners for every single gainer at the market.

The PSEi was led lower by Megaworld, which slid by 4.12 percent while SM Prime and JG Summit all fell by over 3 percent. PLDT and MPI dropped by over 2 percent while Jollibee, Metrobank and Globe fell by over 1 percent.

ALI, GTCAP and AC also weighed down the market.

Among the few PSEi stocks that bucked the downturn were URC and AEV.

Outside of PSEi, Security Bank’s shares rose by 6.67 percent to close at P144 per share as the bank took in Japan’s largest bank as a strategic partner.

At Thursday’s closing, the PSEi is still 21 percent off the historical peak level seen in April 2015. If the index remains trapped below 20 percent of the peak for three months, it is deemed to have switched from a bull to a bear market cycle.