Stocks sink further in the red

MANILA, Philippines - The local equities market extended an already rough  start to the year yesterday, losing further ground after another selloff  that sent the main composite index hovering near the 6,000 mark.

The benchmark Philippine Stock Exchange index (PSEi) dropped to another 52-week low yesterday, plunging 175.33 points, or 2.80 percent, to close at 6,084.28, while the broader All Shares index lost 86.04 points, or 2.39 percent, to end at 3,519.58.

 Justino Calaycay of Philstocks Financial Inc. said investors are staying on the sidelines amid the prevailing volatility in the stock market.

 “As the market approaches the 6,000-mark and as talks abound of a higher probability of further drops, investors are quite expectedly moving to or staying on the sidelines,” Calaycay said.

He said   prices have gone down too low, making it difficult to cut losses for some investors.

“The hole is too deep, relative to levels at the start of the year, to cut losses, the negative momentum too strong and positive leads scarce paralysis is beginning to set in. It is in this context that we view the slack value flows at a time the market continues to fall,” he said.

Value turnover amounted to P7.40 billion. As expected, decliners edged out advancers, 136 to 34, while 40 stocks were left unchanged.

Calaycay urged investors to remain cautious until the market stabilizes.

 “We may miss some opportunities of a rebound, but taking stock of the risks is our top priority at this time,” he said.