PSEi drops 1.9% on slowdown concerns
Credit to Author: ANGELICA BALLESTEROS, TMT| Date: Mon, 25 Mar 2019 16:30:14 +0000
THE stock market plunged by nearly 2 percent on Monday, joining other Asian markets that were spooked by increased fears of a global economic slowdown.
The benchmark Philippine Stock Exchange index (PSEi) fell by as much as 2.56 percent in morning trade before paring losses to end the day down 1.88 percent or 150.40 points to 7,863.02.
The broader All Shares decreased by 1.43 percent or 70.44 points to finish at 4,842.87.
Timson Securities Inc. trader Jervin de Celis said investors sold on fears of a global recession after the yield on 10-year US Treasury bonds fell below those for three-year papers on Friday — the first time this had happened since the 2007 global financial crisis.
This followed a Federal Reserve announcement a few days earlier that it would likely no longer hike interest rates this year last owing to unease about the US and global economy.
“While the dovish stance of the Fed gave relief for stock market investors, it also renewed concerns about [an] economic slowdown which is not yet fully priced in the markets this year,” De Celis said.
In a separate comment, Eastern Securities Development Corp. trader Jayniel Manuel said the market pulled back after a three-day rally to the 8,000 level.
“I expect our index to recover [in] the next coming days,” he added.
Asian markets were said to have also reacted to Wall Street losses on Friday — its second worst day of the year — as the yield curve briefly inverted. The Nasdaq sank the most by 2.5 percent, followed by S&P500 at 1.9 percent and the Dow Jones by 1.8 percent.
London and Frankfurt also both finished 2 percent off.
The losses filtered through to Asia, with Tokyo registering the largest drop of 3.01 percent on Monday. Shanghai declined 1.97 percent, Hong Kong fell by 2.03 percent and Seoul decreased 1.92 percent. Jakarta dived by 1.75 percent, Singapore lost 0.91 percent, and Bangkok was down by 1.24 percent.
In early Monday trade London fell 0.5 percent, Frankfurt dived 0.4 percent and Paris shed 0.9 percent.
All sectoral indices dropped in Manila, with holding firms down the most by 2.74 percent.
Volume turnover stood at 700 million shares valued at P5.2 billion.
Decliners beat advancers, 142 to 47, while 41 issues were unchanged.
With a reports from AFP
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