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PSEi loses 4.37% in global markets rout



Philippine share prices sank deeper in volatile trading Monday, as investors continued to liquidate positions in a global sell-off hounding markets around the world.

The benchmark PSEi plunged by 287.17 points or 4.37 percent to 6,288.26 at the closing bell. The broader All Shares lose 160.31 or 4.23 percent to 3,627.97.

“We’re also tracking down other Asian markets. Shanghai was down and there was a sudden drop in oil to 12-year lows,” Luis A. Limlingan, business development head at Regina Capital Development Corp. said in a phone interview.

"Asian shares tumbled again Monday as another round of tepid data added to concerns about China's economy, which is already responsible for sparking a rout across global markets at the start of the year," Agence France-Presse reported.

In a separate statement, PSE President and CEO Hans B. Sicat noted, "Negative developments overseas continue to affect the performance of global equities including the Philippine market.

"Money managers, including foreign funds, are assessing and rebalancing their exposure to emerging markets following the sell-off," he added.

“It’s pretty much the same reason,” Limlingan noted.

Earlier on Monday,  Limlingan said the US employment data released on Friday was “too abrupt of a change.”

He noted the renewed strength of the US economy could signify high increases in interest rates by the US Federal Reserve.

China is one of the major trading partners of the US and is expected to be adversely affected by this development, he noted.

“We could see some more selling. Volume has picked, so people are trying to leave. If we fail to hold the 6,300 level and there’s still more bad news coming,  we could reach 6,000,” he added.

More than 4.787 billion shares, valued at P7.227 billion changed hands. Losers led advancers, 182 to 22, and 28 issues were unchanged.

"The situation though does not change what is happening in the real economy, with the growth drivers seemingly intact," Sicat noted.

"The demographic dividends are all the more pronounced, given strong business process outsourcing performance, robust consumer sector, lower inflation, and growth in infrastructure," he said.

"We hope that the resilience and sound fundamentals of the local economy will be apparent in the medium term and can help temper the volatility over the coming periods,” Sicat added. – VS/NB, GMA News

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