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.