PSE Index Plummets Below Support Level

The Philippine Stock Exchange (PSE) index plummeted below its support level Tuesday, signaling bearish sentiments as foreign investors continue to exit the market due to higher income opportunities in the US.

Photo Insert: The Philippine Stock Exchange (PSE) Index, October 24, 2023

Value turnover hit a low, ending the day at 6,039.72 points, down by 48.72 points or 0.80 percent. Market analysts anticipate further declines after the index dropped below its support level at 6,500 points.

All the sub-indices posted losses as the market sell-off affected blue-chip stocks that had initially seen gains. The financials sector declined by 0.37 percent, despite a small rise at market recess.

For example, Metrobank dropped by 70 centavos to P53.15, and Bank of PI lost P1.60 to P100.60.

On the other hand, Security Bank was up by 5 centavos to P76.70, PNB up by 4 centavos to P18.68, and BDO Unibank was up by a peso to P127.40. BPI was the most active stock with trades worth P237 million, while BDO was the third most active with P213 million in trades. ICTSI was the second most active with P223 million in trades as it went down by P3 to P202.

Holding firms lost 0.80 percent, with market bellwether SM Investments closing unchanged at P811, while Ayala Corp declined by P7 to P602, GT Capital down by P8.50 to P537, Aboitiz Equity down by 10 centavos to P47.30, JG Summit down by 3.4 percent to P36.90, a loss of P1.30.

Services lost 1.32 percent, industrials by 0.30 percent, property by 0.85 percent, and mining and oil by 0.77 percent.

Among the losers were PLDT, down by P16 to P1,204, SM Prime, down by 70 centavos to P30.20, Semirara Mining, down by 30 centavos to P30.55, Dito CME, down by 7 centavos to P2.91, Robinsons Land, down by 8 centavos to P14.62, Bloomberry, down by 12 centavos to P9.88, Converge, down by 27 centavos to P8.61, Monde Nissin, down by 10 centavos to P8.18, and Globe Telecom, down by P5 to P1,790.

Ayala Land rose by 25 centavos to P28.40, Century Food was up by 20 centavos to P28.75, Aboitiz Power up by 75 centavos to P36, and Jollibee Foods up by a peso to P211. Nickel Asia remained unchanged at P5.50.

Value turnover amounted to just P2.5 billion, more than half the average of P6 billion in trades. Net foreign selling reached P633 million, with foreign buying of P959 million and foreign selling of P1.592 billion.

Analysts anticipate a flat market with a bias towards a decline, given the geopolitical concerns surrounding the Israel-Hamas conflict, including the potential widening of the conflict area, which could lead to increased oil prices at a time of an inflation spike in developed countries and lower growth rates.

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