PHL stocks plunge 2% on Wall Street dive, trade spat with China

Reuters reported the Dow Jones Industrial average closed down 125.25 points, or 0.98 percent, at 12,695.35. The Standard & Poor's 500 Index fell 15.04 points, or 1.11 percent, to 1,338.35. The Nasdaq Composite Index slid 31.24 points, or 1.06 percent, at 2,902.58.

 

That 125-point drop from the Dow Jones “is big,” noted Angeles of First Metro Securities.

 

China and the Philippines remain in a deadlock over a territorial dispute involving the Panatag Shoal, with both Beijing and Manila claiming sovereignty over it.

 

As a result, travel agencies in China have cancelled tour packages to the Philippines and Philippine bananas were held in quarantine by Chinese authorities for health and sanitary reasons. 'Still some selling pressure'

 

China is one of our biggest trading partners, and this having a big impact on the market, “especially if the situation is prolonged,” Angeles said.

 

“The market opened sharply lower–it was a sell off–recovered, then dropped again,” the equities research chief noted. 

 

With the important support level at 5,000 already breach, he said the next strong support is around 4,800. 

 

“There is still some selling pressure,” Angeles noted.

 

However, he remains optimistic because, “even at 4,800 the PSEi is ahead by 9.8 percent since the start of the year.

 

“Fund managers have their budget for the year, so why risk it now,” he added. —GMA News