Index falls for 6th day, ends below 7,500

The stock market was down again yesterday, with the benchmark Philippine Stock Exchange index falling below the 7,500 mark as renewed fears of a trade war spilled over Asian stocks.

The index is now on its sixday losing streak as the peso continued to depreciate against the dollar, piercing the 54 to $1 level to close at 54.13.

The PSEi shed 68.81 points, or 0.91 percent, to finish at 7,449.20 while the broader All Shares index lost 20.12 points, or 0.43 percent, to end at 4,577.16.

Most of the counters also ended in negative territory except for the mining and oil and services sectors.

Total value turnover, meanwhile, was thin at P5.667 billion and market breadth was negative 101 to 83 while 56 issues were unchanged.

Yesterday’s index was the lowest level since July 24 when it finished at 7,447.

RCBC’ s Raul Ruiz said that after breaking the critical support of 7,500, the index may continue to head south toward the 7,100 level.

“After some initial strength in the morning, the PSEi fell straight down during the day and was even sold down at the close to end 68.81 points lower at 7,449.20. The US-peso breaking out of its psychological 54 resistance level to make an intraday high of 53.89 may have had a hand in today’s weakness. Net foreign selling likewise accelerated to P886 million from yesterday’s P577 million,” said Jose Gabriel Perez of Papa Securities.