THE Philippine index plummeted to the 6,900-point territory on Tuesday amid worries on global oil prices.
The bellwether Philippine Stock Exchange index plunged 4.26 percent, or 310.34 points, to its day low of 6,977.73 while the broader All Shares lost 3.3 percent, or 127.46 points, to close at 3,739.52.
This is the market's biggest single-day decline since June 15, 2020, when it tumbled by 4.82 percent, or 312.42 points, and its lowest finish since Dec. 1, 2021, when it closed at 6,947.06.
Japhet Tantiangco, Philstocks Financial Inc. senior research analyst, said the market declined further amid worries on the possible imposition of sanctions on oil exports of Russia.
“The said move is expected to lead to a surge in oil prices which would cause inflationary pressures,” he explained.
Tantiangco added that the depreciation of the Philippine peso to the P52 level further weighed on market sentiment.
The Philippine peso closed at P52.32:$1 on Tuesday.
Luis Limlingan, Regina Capital Development Corp. managing director, likewise, attributed the market's drop to worries on the surging oil prices.
“Philippine stocks plunged yet again on worries that the rising energy prices caused by the Russia-Ukraine war would slow the economy and drive inflation hotter,” Limlingan said.
He added that investors are also waiting for the upcoming release of the February consumer price index data abroad.
Trading continued to exhibit strength as net value turnover stood at P11.2 billion, better than the year-to-date average of P7.24 billion.
Foreign funds still exited the market with net outflow amounting to P850.32 million.
The miners remained the only survivors among local sectors after climbing 3.62 percent while the banks lost the most at 5.16 percent.
Total volume turnover was at 2.35 billion shares valued at P12.16 billion.
Decliners edged out gainers at 178 to 57 while 21 securities were unchanged.
Credit belongs to : www.manilatimes.net