PSEi falls 1.71%

THE LOCAL stock barometer tumbled sharply in the first trading day of 2016 as renewed stock market rout in China and geopolitical tension in the Middle East curbed risk-taking across regional markets.

The Philippine Stock Exchange index lost 118.66 points or 1.71 percent to close at 6,833.42 in thin trade.

Across the region, sentiment was weak as China factory data dragged down stocks in China, resulting in trading suspension following a 7-percent drop.

Investors were likewise jittery over the Middle East after Saudi Arabia, severed diplomatic ties with Iran.

All counters were heavily battered but the services counter suffered the biggest decline at 2.47 percent. The financial, holding firm, mining/oil and property counters all slid by over 1 percent.

Value turnover, however, was very thin at P2.99 billion as many investors were still on a holiday break.

There were nearly thrice as many decliners (120) as advancers (42).

The PSEi was dragged down by JG Summit which fell by 4.09 percent while PLDT, Globe, Megaworld, SMIC, BDO and Jollibee all slumped by over 2 percent.

SM Prime, ALI, Metrobank and AEV slipped by over 1 percent while AGI al- so contributed to the day's decline.

Outside of PSEi stocks, one notable decliner was PLC which slid by 9.38 percent.

On the other hand, URC and MPI slightly firmed up.

Among the notable gainers outside of the PSEi was RRHI (+1.83 percent) while Security Bank and Cebu Air also firmed up in relatively heavy trade.

Meanwhile, PSE officials rang the opening bell to welcome the New Year and signal the first trading day of 2016.

“Alongside achieving business targets, I hope that this year, wewill be able to help more and more Filipinos to be financially educated. I hope that the initiatives of the Exchange will encourage our countrymen to take advantage of investing in the stock market,” PSE chair Jose Pardo said in his welcome remarks during the program.