STOCKS slid on Tuesday amid volatile global oil prices on lockdowns in China due to a surge in coronavirus disease 2019 (COVID-19) cases.

The benchmark Philippine Stock Exchange index (PSEi) shed 40.81 points or 0.58% to close at 6,980.02 on Tuesday, while the broader all shares went down by 10.41 points or 0.28% to 3,712.39.

“The PSEi declined today to among one-month lows after global oil prices went up from two-week lows. The lockdowns in China could slow down economic recovery prospects and valuations, as more aggressive rate hikes by the Fed (US Federal Reserve) and global central banks are deliberate efforts to slow down the economy to better rein in or curb elevated inflation,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a text message.

“Philippine shares slid into the red as concerns about a global economic slowdown amid COVID-19 outbreaks in China sent interest rates lower,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“Investor sentiment was dampened by inflation fears amid the newly implemented increase in fuel prices, and concerns over China’s COVID-19 stricken economy and its knock-on effects on the local economy. Adding to the worries is the growing warnings over a possible rise in COVID-19 cases in the country in the succeeding months,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco added in a Viber message.

On Tuesday, Brent crude futures were up 59 cents or 0.58% at $102.91 a barrel after rising to $103.93 earlier in the session, while US West Texas Intermediate contracts were up 34 cents or 0.35% at $98.88 per barrel.

The lockdown in Shanghai and the spread of cases in other big cities like Beijing is weighing on the growth outlook for the world’s second-largest economy and investment sentiment, Reuters reported.

The majority of sectoral indices ended in the red on Tuesday except for property, which gained 28.47 points or 0.88% to 3,241.02 and industrials, which went up by 48.64 points or 0.51% to 9,412.55.

Meanwhile, holding firms fell by 99.01 points or 1.49% to 6,547.19; financials declined by 21.22 points or 1.27% to 1,649.22; services lost 13.11 points or 0.67% to 1,941.77; and mining and oil dropped by 67.60 points or 0.56% to 11,941.73.

The MidCap index retreated by 0.85 point or 0.07% to 1,151.61 and the Dividend Yield index dropped by 9.71 points or 0.59% to close at 1,647.88.

Value turnover decreased to P4.11 billion with 549.51 million shares changing hands on Tuesday from the P4.52 billion with 650.10 million issues seen on Monday.

Advancers narrowly outnumbered decliners, 94 versus 91, while 48 names closed unchanged.

Net foreign selling dropped to P312.19 million on Tuesday from P370.58 million the previous trading day.

For the remainder of the week, RCBC’s Mr. Ricafort placed the PSEi’s immediate support at the 6,800 to 6,900 levels. — Luisa Maria Jacinta C. Jocson with Reuters