MANILA, Philippines — The stock market was unable to sustain its recovery, plunging into another sea of red yesterday as it hit its lowest point of the year at 5,974.17 before returning above the 6,000 level in the second half of the session.
The benchmark Philippine Stock Exchange index (PSEi) tumbled by 36.01 points or 0.59 percent to close at 6,018.49 while the broader All Shares index slipped to 3,266.02, down by 22.81 points or 0.69 percent.
All indexes were down with services, financials and mining and oil among the biggest decliners. Total value turnover reached P3.06 billion. Market breadth was negative with 115 losers and 47 gainers while
51 issues were unchanged. Mikhail Plopenio of Philstocks Financial said the local market dropped as investors took negative cues from Wall Street overnight caused by the climb of the US’ long-term Treasury yields.
“Additionally, concerns over an off-cycle rate hike by the Bangko Sentral ng Pilipinas, which eventually materialized this afternoon as the BSP decided to increase the points, weighed on the market,” Plopenio said.
Concerns over the ongoing conflict in the Middle East are keeping many on the sidelines as well, he said. Foreigners were net sellers with net outflows amounting to P319.07 million.
In other Asian markets, stocks sank, tracking a retreat on Wall Street fuelled by a surge in US Treasuries and worries over a possible escalation of the Middle East crisis, which also pushed oil prices higher.
Disappointing corporate reports from US tech titans added to thesense of gloom among investors, while the burst of optimism that greeted China’s massive spending pledge this week began to fade.
Data later in the day is expected to show US gross domestic product expanded heartily in the third quarter but there is a worry that with borrowing costs at two-decade highs and oil elevated, a contraction could follow in the new year. That comes amid a corporatereporting season that saw Facebook parent Meta warn about the outlook next year, Google parent Alphabet post disappointing cloud figures and Texas Instruments issue bearish forecasts.