Local stocks slump amid global rout
By Arra B. Francia, Reporter
LOCAL stocks took another beating on Friday, tracking the bloodbath in international markets as investors resumed profit taking.
The main index dropped 1.64% or 141.39 points to finish at 8,503.69 on Friday, less than 300 points down from its previous week’s finish. The broader all-shares index also gave up 1.3% or 66.29 points to 5,028.38.
“Philippine stocks retreated deeper into negative territory as Wall Street tangled with further volatility, with concerns about rising inflation and bond yields weighing on investors’ psyche against the backdrop of a relatively healthy domestic economy,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said.
Global markets recorded even greater losses on Wednesday, with the Dow Jones Industrial Average plummeting by 1,032.89 points or 4.15% to end at 23,860.46. The S&P 500 index dropped 3.75% or 100.66 points to 2,581, while the Nasdaq Composite index was down by 274.82 points or 3.9% to 6,777.16.
“Basically it was carried by the US market being soft last night, but technically the way I look at it is the short term is trying to support itself right now at this level, even in the United States,” Summit Securities, Inc. President Harry G. Liu said in a phone interview.
Mr. Liu noted the market’s descent is a serious correction as it has gone up quite extensively since mid-2017. Fundamentals of companies however, remain intact.
“There’s no change in economic situation, so this will just be part of profit taking due to both US and our market have gone up extensively,” he said.
Regina Capital’s Mr. Limlingan meanwhile noted some investors have raised concerns after the Bangko Sentral ng Pilipinas raised its inflation forecast to 4.3% for full year 2018.
No sectoral counter was spared from the day’s sell-off. The property sub-index lost 2.45% or 96.24 points to 3,824.11, followed by holding firms that slowed 1.57% or 137.01 points to 8,615.28. Industrial slipped 1.25% or 146.19 points to 11,566.15; mining and oil shed 0.99% or 114.51 points to 11,424.21; financials dipped 0.95% or 20.91 points to 2,184.54; while services shed 0.91% or 15.52 points to 1,696.39.
Most stocks declined for the day, 138 versus the 64 that went up, while 46 names were unchanged.
The market’s value turnover stood at P8.62 billion after some 1.35 billion issues switched hands.
Foreigners continued their selling streak for the 11th day, even as net outflows slimmed to P136.8 million on Friday, against the P556.3 million recorded in the previous session.
