Still bugged by the low 4-percent economic growth in the third quarter and national governance issues, the Philippine Stock Exchange index’s (PSEi) fell to its lowest level since the start of the pandemic in 2020.
After a two-day rise on Friday, the main stocks gauge shed 2.49 percent to 5,584.35 points, while the broader All Shares barometer by went down by 4.13 percent to 3,260.26 points.
It was the first time the PSEi went below 5,600 points this year, and mirrors the fall of the stock index at the start of the pandemic of below 5,600 points in the early part of March 2020.
To recall, the PSEi fells to new lows this week and Friday last week: 5,759.37 on November 7; 5,702.64 on November 10; and 5,629.07 on November 11. The stock index then rebounded on November 12 and 13, before falling to a new low on November 14.
The two-day rally was fueled by the US government ending its shutdown.
“The local market extended its gains as the end of the US government’s shutdown with the signing of the funding bill compelled investors to do more bargain hunting,” Philstocks Financial, Inc. said in a report.
However, the ghost of the low 4-percent gross domestic product (GDP) in the third quarter continued to haunt the market.
“The Philippine market ended sharply lower as strong selling pressure and profit-taking weighed on the index after its recent gains. Overall sentiment also softened as fresh earnings results and macroeconomic data continued to influence investor behavior,” said Luis Limlingan, Regina Capital Development Corp. head of sales.
All the sectoral indices also finished in the red, led by Mining and Oil, which declined by 5.28 percent.
Trailing behind were Services, 3.11 percent; Financials, 2.89 percent; Property, 1.87 percent; Holding Firms, 1.86 percent; and Industrial, 1.40 percent.
Volume of trade reached 1.68 billion, amounting to P6.26 billion.
Decliners led advancers at 133 to 64 while 51 shares were unchanged.
PIXABAY PHOTO