Index continues retreat on weak regional markets

MANILA, Philippines - Share prices continued to drop as the local bourse took its cue from weak regional stocks amid concerns on low oil prices, analysts said.

The benchmark Philippine Stock Exchange index (PSE) again stayed below the 7,000-mark, closing 73.44 points lower at 6,838.42, while the broader All Shares index ended 35.89 points lower at 3,950.54.

All other indexes closed in negative territory.

Value turnover amounted to P4.704 billion as decliners edged out advancers 116 to 55, while 44 stocks were unchanged.

Analysts said panic selling continued as the local bourse took its cue from regional marts due to rising concerns on low oil prices.

The global oil benchmark Brent crude futures dropped 5.4 percent to $40.66 per barrel on Monday as the powerful Organization of the Petroleum Exporting Countries’ policy meeting on Friday ended without an agreement to lower production.

Analysts also said investors would continue to adopt a wait and see stance ahead of the US Fed Rate meeting next week.

It is widely believed that the US Fed will jack up rates in its meeting next week.

Fed chairman Janet Yellen commented on the improving US economy, affirming expectations the US Fed would likely raise rates.

Higher  rates  in  the  US  are expected to be followed by similar rises in emerging  markets  like  the  Philippines,  which  will  try  to keep their economies  attractive  with  higher  yields.  On the flipside, higher rates could  dent  consumer  demand  by  making  bank  credit  more expensive for borrowers, said Jonathan Ravelas, BDO chief market strategist.