MANILA, Philippines — First day jitters swept investors as the market returned yesterday from a long holiday break, welcoming the new year on a sour note.
The Philippine Stock Exchange index (PSEi) retreated by 72.73 points, or 0.93 percent, to close at 7,742.53.
The broader All Shares index likewise fell by 0.66 percent, or 30.92 points, to settle at 4,618.75.
The PSEI lost 145.03 points during the morning trades, but slightly recovered in the afternoon as buying entered the picture. Still, it was not enough to overturn the day’s negative momentum.
“Sentiments seem to have been hit hard by the President’s unceasing tirades against the water concessionaires and broadcaster ABS-CBN Corp., even ahead of a scheduled message on the issues on Jan. 6,” Philstocks Financial head of research Jun Calaycay said.
The services index was the only one in the positive territory yesterday with a 0.21-percent gain, while the rest were all in the red.
Financials, industrial, and mining and oil all saw a decline of more than one percent.
Value turnover was thin at P4.48 billion. Decliners crushed advancers, 111 to 60, while 66 stocks were unchanged.
Prior to Thursday’s close, Calaycay said losses to welcome a new trading calendar have occurred only three times in the local market in the last decade, namely in 2010, 2014 and in 2016.
He noted, however, that the first two days of the trading calendar may not be an accurate barometer of investor sentiment going forward as the real picture would likely emerge next week.
“At this point, the local market may be looking inward rather on externalities, as investors attempt to make sense of the regulatory issues surrounding the water concessionaires and again, ABS-CBN,” Calaycay said.