PSEi plunges on Serendra blast, Wall St fall
MANILA, Philippines (2nd UPDATE) - Philippine stocks plummeted on Monday, June 3 on heavy selling in Ayala stocks following the May 31 explosion at the posh Serendra condominium in Taguig City, and losses in Wall Street.
The benchmark Philippine Stock Exchange index nosedived 258.57 points or 3.68% to 6,763.38.
The broader all-share index plunged 115.16 points or 2.68% to 4,176.87.
Losers beat gainers, 138 to 33, while 33 stocks were unchanged.
A total of 2 billion shares worth P16.6 billion were traded.
"Investors are reacting to the blast last Friday," Francisco Liboro, president of PCCI Securities, told Rappler in a phone interview.
Three people were killed, while 5 others were injured in the explosion that rocked a unit of the Two Serendra condominium in Bonifacio Global City.
The powerful blast sent a chunk of rubble to a nearby street, pinning down a delivery truck.
Liboro said the market also experienced a "much-needed correction."
"We see support trying to hold at 6,800. Then 6,500 is the next target. Even if it hits 6,500, I won't call it a bear market. It will still be just a correction," Liboro said.
"The market hasn't corrected in a long time. It's healthy."
Other analysts, in the meantime, said local stocks also took their cue from the US market.
"The market was carried by Dow Jones. The last 3 days, the local market is in oversold condition... We expect a rally in the coming days. This is not a cause of alarm," said Harry Liu of Summit Securities.
On Friday, May 31, the Dow settled at 15,115.57, down 208.96 points or 1.36%.
All sectoral indices finished in negative territory, with the property index posting the biggest decline of 4.96%.
The property index was pulled down by losses in stocks of the Ayala group, the developer of Serendra, and merging SM firms.
Ayala Land Inc. closed down 7.3% at P31.30 per share. Its parent Ayala Corp. fell 1.35% to P621.50.
Highlands Prime went down 5.79% to P2.44 apiece, while mall operator SM Prime Holdings fell 6.46% to P18.24. - Rappler.com