PSEi plunges as severe tropical storm dampens sentiment

MANILA, Philippines —   Share prices fell for a second straight day as the onslaught of Severe Tropical Storm Kristine dampened investor sentiment.

The benchmark Philippine Stock Exchange index (PSEi) plunged by 1.14 percent or 83.87 points yesterday to close the session at 7,283.79.

The broader All Shares index followed suit, shedding by 1.07 percent or 43.37 points to settle at 4,007.39.

“The PSEi corrected lower for the second straight trading day as potentially large storm damage by Kristine could lead to some temporary business/economic disruptions that could lead to some transitory increase in prices, especially in hard hit areas until supply chains eventually normalize,” RCBC chief economist Michael Ricafort said.

Ricafort said lingering risks related to the US presidential elections on Nov. 5 has also been a factor in the PSEi’s recent “healthy correction.”

Philstocks Financial research manager Japhet Tantiangco said yesterday’s decline is a result of investors continuing to exit amid the lack of positive catalysts.

“The exit of foreign funds also contributed to the fall with net outflows amounting to P206.43 million,” he said.

Net value turnover further thinned to P3.60 billion from the previous day’s P4.08 billion.

All sectors were in the red, with financials taking the biggest hit with a 1.77-percent drop.

Industrial, property as well as mining and oil also fell by more than one percent each.

Market breadth remained negative as decliners battered advancers, 139 to 53, while 53 shares were unchanged.

ICTSI was the only index member which ended with gains at 0.49 percent, while DMCI Holdings lost the most at 3.42 percent.