Italy crisis blamed as PSEi drops

THE stock market fell for third straight session on Tuesday as investor sentiment was dampened by emerging eurozone concerns.

The benchmark Philippine Stock Exchange index ( PSEi) dropped 0.53 percent or 40.54 points to close at 7,602.36. The broader All Shares dipped 0.16 percent or 7.44 points to finish at 4,640.67.

“Italy’s political woes are scaring off global investors so they are in a bearish mode,” Timson Securities, Inc. equity trader Jervin de Celis said.

“That’s why the PSEi, in the absence of any fresh leads within the country, has been dragged by the news from the European market down to its short term support,” he added.

EU member Italy has been plunged into a political crisis after President Sergio Mattarella rejected a choice for finance minister, scuppering the formation of a new government and raising the prospect of new elections.

Diversified Securities, Inc. equity trader Aniceto Pangan also blamed worries over Italy, which affected European markets and subsequently spread worldwide.

Luis Limlingan, managing director of Regina Capital Development Corp., said local shares succumbed to profit- taking with minimal guidance as US markets were closed on Monday for the Memorial Day holiday.

In Manila, only the financials and services indices registered gains, up by 0.09 percent and 0.41 percent, respectively.

Over 1.15 billion issues valued at P6.1 billion changed hands.

Losers led winners, 101 to 89, while 54 issues were unchanged.