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Jittery overseas markets spook PSEi.

SHARE prices plunged for the second straight session on Tuesday after foreign investors dumped local shares on jittery markets overseas, mainly on the escalating trade war tensions between the United States and China.

The benchmark Philippine Stock Exchange index (PSEi) fell 123.27 points to close at 7,766.75 points, with Jollibee Foods Corp. and Ayala group of companies most bloodied.

'The bloodbath continued for a second day as Treasury yields plunged and gold surged as an ominous sign for a flight to safe haven assets. Stocks suffered one of their biggest declines in 2019 as China allowed its currency to fall to a more than 10-year low to versus the dollar,' Luis Limlingan, managing director at Regina Capital and Development Corp., said.

Since Monday, the main index has lost 363.18 points or about 4.5 percent.

'We had another situation like yesterday [Monday], of foreign investors dumping Philippine equities while locals are scooping them up at low prices,' Christopher Mangun, research head at AAA Securities Inc., said.

'Inflation [rate for July] came in at 2.4 percent, the low-end of the consensus. We have second-quarter GDP [gross domestic product] coming in on Thursday and I'm still hoping it comes in above 6 percent. We will end the week lower but I'm banking on a recovery before the week is up,' he said. Foreign investors were net sellers at P1.67 billion, while total shares traded was at 1.39 billion, valued at P9.71 billion. Decliners edged out gainers 165 to 47 and 37 stocks were unchanged.

All other subindices were down by at least 1 percent. The broader All Shares fell 57.20 points to 4,763.91 points, the Financials index declined 31.18 to 1,783.33, the Holding Firms index slid 130.76 to 7,568.04 and the Mining and Oil index was down 165.47 to 8,030.31.

Property developer Ayala Land Inc. was the day's most actively traded and it fell P1.10 to P48.05, Jollibee Foods declined P12 to P235, Ayala Corp. gave up P9.50 to P921, Bank of the Philippine Islands retreated P2 to P88.50, SM Investments Corp. shed P8 to P960 and International Container Terminal Services Inc. was down P1.70 to P122.90.

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Publication:Business Mirror (Makati City, Philippines)
Date:Aug 7, 2019
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