Philippine stocks log biggest single-day price drop in over a year
MANILA, Philippines – Philippine stocks suffered their biggest single-day price drop in over a year on Monday, February 5, dragged by sell-offs in global markets.
The bellwether Philippine Stock Exchange index (PSEi) on Monday ended at 8,616 points, 2.21% or 194.75 points lower than that of Friday, February 2. The broader All Shares also slid by 111.40 points or 2.15% to 5,070.42 points on Monday.
Foreign funds bought P3.104 billion worth of shares on Monday and sold P5.058 billion, resulting in net selling of P1.954 billion.
This is the biggest single-day price drop for the PSE in 13 months. The last time it recorded a 2.47% drop was on December 12, 2016.
It was only last Friday when the PSEi broke the 9,000 barrier for the 1st time. Analysts said Monday's drop in share prices was due to the negative investor sentiment over sell-offs in markets overseas.
Other Asian markets also suffered their biggest declines in over a year, as investors showed concern over Friday's US payrolls report, which showed salaries growing at their fastest pace in over 8 years, according to Reuters.
"US equities suffered their largest one-day decline in a year on Friday, contributing to the worst week for the S&P500 in around two years...Markets in Asia also opened lower in response to the weak overnight markets," Marita Limlingan, president of Regina Capital Development Corporation, said in a note.
Limlingan added that European stocks dropped for a 5th straight session last Friday, "with the German market leading the charge south."
The PSE's best stock performer of the session was the Bank of the Philippine Islands (BPI), which rose 1.50% or 1.80 points to trade at P121.80 apiece at the closing bell.
The worst performer of the session was Metro Pacific Investments Corporation (MPIC), which slid by 5.11% or 0.330 points to trade at P6.130 at the close. – Rappler.com