Stocks tumble anew, PSEi falls below 6,400

MANILA, Philippines — Local shares tumbled yesterday below the 6,400 level amid persisting negative sentiment following Moody’s credit rating downgrade of the US.

The benchmark Philippine Stock Exchange index or PSEi declined for the fifth consecutive session, plunging by 1.85 percent or 119.51 points to close at 6,335.33.

The meltdown came exactly a week after the index soared past the 6,500 level for the first time since early January, wherein it ended at 6,566.82.

Also finishing yesterday’s session in negative territory was the broader All Shares index, which plummeted by 1.20 percent or 45.09 percent to 3,720.57.

“Philippine shares extended their decline as investors grew more wary, opting to scale back their holdings after initial optimism waned following Moody’s US downgrade,” Luis Limlingan of Regina Capital said.

Moody’s credit rating downgrade for the US is expected to push the country’s interest rates higher.

On the local front, counters were covered in red, with services taking the biggest hit with a 2.21 percent drop. Financials and holding firms were also major casualties, declining by 1.99 percent and 1.83 percent, respectively.

Market breadth remained negative as decliners battered advancers, 126 to 62, while 55 issues did not change.

Net value turnover, however, managed to improve to P6.8 billion from the previous day’s P5.8 billion.

BDO was yesterday’s top traded stock, diving by 1.71 percent to P155.10 per share, followed by ICTSI and BPI which fell by 3.85 percent and 3.53 percent, respectively, to P400 and P131.10.