PSEi posts steepest fall since 2008

Rappler.com
The sell-off comes as central banks hold off from taking new monetary easing measures

MANILA, Philippines (UPDATED) – Local shares on Wednesday, June 13 suffered their worst day since 2008, falling back to the 6,100 level. 

The benchmark Philippine Stock Exchange index (PSEi) plunged 442.57 points or 6.75% to 6,114.08, marking the second straight session of decline as investors pulled out of global markets on the prospect of reduced stimulus from central banks.

The decline was the steepest since October 27, 2008, when the PSEi nosedived 12.27% or 239.66 points.

It also wiped out most of the gains for this year. Wednesday’s close was the lowest since January 23, when the PSEi settled at 6,092.53.

The broader all-share index dropped 228.84 or 5.63% to 3,834.87.

All counters finished in negative territory, led by the property sector, which fell 7.3%.

Losers outpaced gainers, 182 to 18, while 24 stocks were unchanged.

A total of 2.5 billion shares worth P16 billion were traded.

COL Financial Research Head April Lee-Tan said, “Most markets were down so we were no exception. I don’t see any domestic reason for this.”

A Reuters report quoting analysts said markets were rattled by comments from US Fed Chairman Ben Bernanke suggesting a cut in a bond-buying stimulus plan if the US economy continued to improve.

The Bank of Japan also held off from taking new monetary easing measures.

On Wall Street, the Dow fell 0.84%, the S&P 500 also slid 0.84% and the Nasdaq was down 1.06%.

In the region, Tokyo’s Nikkei crumbled, losing 6.35%, while Hong Kong shed 2.19%.

Sydney ended 0.61% lower, and Seoul skidded 1.42%.

But Tan said, “This is not a cause of alarm. It is part of the market cycle.”

She said the local market’s decline was “an opportunity to buy” at cheap prices. – with a report from Reuters and Lean Santos/Rappler.com

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