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SHARES tumbled further on Tuesday on continued profit-taking amid growing fears of a global recession as central banks tightened further amid inflationary risks.
The Philippine Stock Exchange Index (PSEi) fell 86.03 points, or 1.28%, to close at 6,618.38 on Tuesday, while the broader all-shares index fell 46.02 points, or 1.28%, to 3,531.91 fell.
“Local stocks sold off again as the summer rally eased amid rising concerns about a rate hike,” Luis A. Limlingan, director of sales at Regina Capital Development Corp., said in a Viber message.
“Profit-takers continued to emerge, prompting the PSEi to pullback to the 6,600 level after remaining in the overbought region last week,” added Mr. Limlingan.
Jovis L. Vistan, vice president and research director of AB Capital Securities, Inc., also said Philippine stocks fell on profit-taking and renewed fears of a global recession.
“High energy prices in Europe are expected to weaken western economies and this has pushed the euro to 20-year lows,” Mr Vistan said in a Viber message
Oil prices rose on Tuesday after Saudi Arabia warned that the Organization of Petroleum Exporting Countries, a major oil producer, could cut production in a bid to correct a recent oil price slide, Reuters reported.
Brent crude was up 42 cents, or 0.4%, to $96.90 a barrel, while US West Texas Intermediate crude futures were up 40 cents, or 0.4%, to $90.76 a barrel.
The sluggish economies of Germany and France put more pressure on markets on Tuesday as decades of high inflation and rising gas prices push Europe into recession.
At home, all sector indices closed lower on Tuesday. Mining & Oil declined 351.13 points, or 2.89%, to 11,781.67; Real estate fell 54.92 points, or 1.83%, to 2,935.84; keep firms declined 105.14 points, or 1.63%, to 6,331.84; Services lost 20.76 points or 1.18% to close at 1725.42; Industrials down 109.29 points or 1.09% to close at 9,865.55; and fiFinancials declined 1.23 points, or 0.07%, to 1,579.85.
Value turnover rose to 5.67 billion pesos on Tuesday, with 972.68 million shares changing hands, from 5.44 billion pesos with 816.98 million issues on Monday.
Rejectors overwhelmed movers, 151 vs. 37, while 40 names remained unchanged.
Overseas net sales fell to P100.83 million from P342.42 million the previous trading day.
Mr Limlingan of Regina Capital said investors are waiting for data on US new home sales in July, the manufacturing PMI in August and the Richmond Federal Reserve survey in August, all of which are due to be released overnight.
He placed PSEi support at 6,600 and resistance at 6,850, while AB Capital Securities’ Mr. Vistan placed support at the PSEi 20-day moving average at 6,560 and resistance at 6,770. — Justine Irish D. Tabile With Reuters
