Share prices continued to slide on Tuesday amid Russia’s use of chemical weapons in the war against Ukraine and aggressive austerity measures by the US Federal Reserve to combat rising inflation..
The benchmark Philippine Stock Exchange Index (PSEi) fell 92.93 points, or 1.33%, to close at 6,895.36 on Tuesday, while all broad stocks fell 42.37 points, or 1.13%, to 3,685.84.
“Philippine stocks are selling again as the long weekend approaches. Further growth in Ukraine, as well as a severe lockdown in key areas of China, including Shanghai, has led to massive sales across assets over the past week, “said Luis A. Limlingan, head of sales at Regina Capital Development Corporation.
Mercantile Securities Corporation analyst Jeff Radley C. C says overall market sentiment is going to be bearish
“Investors would prefer a cash position rather than parking their funds in the market. Commodity prices tend to go up. There are still no signs of peace talks between Ukraine and Russia, “Mr C said in a Viber message.
Ukraine’s leader Volodymyr Zelensky said in a televised speech on Monday night that Russia could use chemical weapons because it had gathered troops in the eastern Donbass region for a new attack on the port of Mariupol, where nearly seven thousand people are believed to have died. -Week blockade, Reuters reports.
Mr Limlingan of Regina Capital said investors were reluctant to make big bets ahead of the Fed’s aggressive austerity measures and before the March Consumer Price Index report released later Tuesday.
“The Fed’s signal of a steep hiking cycle has also sparked fears of a recession across investors,” he said.
All sector indices ended in red on Tuesday. Industry fell 206.95 points, or 2.15%, to 9,414.80; Property fell 59.35 points, or 1.83%, to 3,184.49; Mining and oil fell 177.43 points, or 1.43%, to 12,172.43; Services dropped 27.41 points, or 1.42%, to 1,903.45; Financial fell 21.60 points, or 1.29%, to 1,646.21; And holding companies fell 42.01 points, or 0.64%, to 6,501.21.
The midcap index closed 25.21 points or 2.12% lower at 1,166.01 and the dividend yield index fell 33.62 points or 1.99% to 1,658.99.
The turnover increased to P5 billion with a change of shares from P3.36 billion to 1.51 billion with 882.34 million issues issued on Monday.
Decliners overwhelmed the pioneers, 113 vs. 50, while 60 names remained unchanged.
Net foreign sales rose to P749.76 million on Tuesday from P208.85 million seen the day before.
Mr C of Mercantile Securities said the next possible support for the PSEi for the last trading day of the week was between 6,761 and 6,546.
The Philippine financial markets are closed April 14-15, commemorating Maundy Thursday and Good Friday. – Luisa Maria Jacinta c. Jackson With Reuters