SHARE prices plunged to the lowest for the last two years as recession fears overseas have dragged the local market that is already nearing bear territory.
The benchmark Philippine Stock Exchange index fell 239.47 points to close at 6,020.07. This is the main index lowest since October 19, 2020 when it closed at 6,019.26 points.
“The market selloff resumed with local shares following the equity sell-off stateside on the back of an aggressive Federal Reserve and surging interest rates, which in turn have roiled currency markets. The Federal Reserve’s aggressive hiking campaign, coupled with the UK’s tax cuts announced last week has caused the US dollar to surge, pushing to Philippine peso to the P59 to $1 territory,” Luis Limlingan, managing director at Regina Capital Development Corp., said.
The market already opened low at 6,193.04 points and skid to its lowest at 5,962.17 points before making a comeback late in the trade.
“The recession fears brought about by currency volatility also led to oil prices falling,” Limlingan said.
Claire Alviar of Philstocks Finance Inc. said investors were worried about inflation as it may get pressured by the recent typhoon.
“This may also exacerbate our food supply shortages which may lead to higher inflation. Investors digested the impact of Supertyphoon Karding in Luzon as well as the further weakening of the peso,” Alviar said.
She said the market is nearing bear territory, or falling 20 percent from its top. The PSEi is down 15 percent or 1,102.56 points since it opened at the start of the year, according to the PSE data.
“On the bright side, the market was able to return above the 6,000 psychological support level before the market close. We are seeing the resistance at 6,400,” she said.
Total value of trade for the session was high at P20.88 billion. Losers edged gainers 189 to 28 and 37 shares were unchanged.
All other sub-indices closed on the red, led by the broader All Shares index that fell 107.06 points to 3,234.23 points, the Financials index plunged 66.54 to 1,483.43, the Industrial index declined 270.75 to 8,868.37, the Holding Firms index shed 278.09 to 5,787.96, the Property index retreated 106.17 to 2,602.27, the Services index was down 35.93 to 1,601.58 and the Mining and Oil index tumbled 326.54 to 10,808.44.
San Miguel Corp. was the day’s most actively traded but it lost P0.15 to close at P97.50, SM Investments Corp. was down P45 to P763, Ayala Land Inc. fell P0.60 to P24.40, SM Prime Holdings Inc. retreated P1.80 to P32.25, International Container Terminal Services Inc. shed P0.90 to P181 and Ayala Corp. declined P26 to P670.
Image credits: Nonie Reyes