Stocks dive further into bear territory

The bloodbath in the market has not abated as another round of foreign outflows plunged the market deeper into bear territory.

The benchmark Philippine Stock Exchange index (PSEi) plunged by another 86.50 points, or 1.19 percent, to end at 7,134.73 while the broader All Shares likewise dipped to 4,411.96, down 42.75 points, or 0.96 percent.

The rest of the counters all closed in negative territory.

Traders don’t see the foreign selloff abating, noting that the next support level could be around the 7,000 mark.

“It looks like the bloodbath hasn’t stopped yet for the PSEi as another round of foreign outflows, coupled with a large market-on-close selling, pulled the PSEi down 86.50 points to close at 7,134.73,” said Jose Gabriel Perez of Papa Securities.

In all, net foreign selling amounted to P385.7 million, the second highest value for the week so far.

As a result, heavyweights SM, down 3.2 percent and SMPH, down 2.6 percent pulled the index down the most after the two were sold down at the close.

Aboitiz Equity Ventures, which dropped four percent and LT Group, which declined 3.8 percent had the two largest losses of the day.

“With the index’s perilous close today, it edges closer to what could be a support area at 7,078 – the recent double top’s breakdown projection area. Continue to watch out for further foreign selling as foreign flows have had a heavy hand in the market the past few days,” Perez said.