Weak global markets drag down index

MANILA, Philippines - The local benchmark index fell for the third consecutive session yesterday as sour mood in markets abroad continued to dampen local stocks.

The Philippine Stock Exchange index (PSEi) declined 0.32 percent or 22.03 points, staying below the 7,000 level for the second consecutive day at 6,946.06. The broader all shares index likewise dipped 0.25 percent or 10.26 points to 4,135.98.

“We continued to follow leads from overseas markets, particularly the US markets,” AB Capital Securities Inc. analyst Joyce Ramos said.

The main share indexes in Wall Street all ended in the red, with the S&P 500 losing 1.65 percent or 31.39 points followed by Nasdaq which decreased by 1.46 percent or 62.58, and the Dow which shed off 1.35 percent or 223.03 points.

Ramos said bargain hunting kicked in when the PSEi hit an intra-day low of 6,896.47, but it failed to push the bellwether index back into positive territory.

The local market’s bright spots on Tuesday’s trading were the industrial and services counters which picked up 0.35 and 0.29 percent, respectively. Property firms ended with the biggest decline as it dropped 0.81 percent or 22.05 points.

Decliners continued to crush advancers, 110 to 60, while 51 stocks were unchanged. Value turnover reached P12.01 billion.  

“The market will continue to follow leads from overseas markets in the coming days, especially that there is really no domestic news to rely on. The only thing on the horizon right now is the earning season which is still next month,” Ramos said.