Stocks resume downtrend

THE LOCAL stock market returned to the doldrums yesterday as regional investors were unnerved by the overnight bloodbath in Wall Street.

The Philippine Stock Exchange index (PSEi) lost 85.37 points or 1.32 percent to close at 6,408.76, tracking the slump seen in most regional markets.

On Wednesday, the closely watched Dow Jones Industrial fell by 364.81 points or 2.21 percent on concerns that sagging economic growth in China and other emerging markets would impact on the US economy. Volatile commodity prices also dampened sentiment.

At the local market, the PSEi was weighed down by the property counter, which fell by

2.46 percent, while the holding firm, services and mining/oil counters slipped.

Only the financial counter firmed up, lifted by Bank of Tokyo-Mitsubishi’s deal to buy into Security Bank at a big premium.

Value turnover for the day amounted to P5.25 billion. There were five decliners for every single gainer in the market.

The PSEi was led lower by Mega- world, which slid by 4.12 percent, while SM Prime and JG Summit all lost more than 3 percent. PLDT and MPI dropped by 2 percent while Jollibee, Metrobank and Globe fell more than 1 percent.

ALI, GTCAP and AC also weighed down the market.

Among the few PSEi stocks that bucked the downturn were URC and AEV.

Outside of PSEi, Security Bank’s shares rose by 6.67 percent to close at P144 a share as the bank took in Japan’s largest bank as a strategic partner.

At yesterday’s closing, the PSEi was still 21 percent off the historical peak seen in April 2015. If the index remains trapped below 20 percent of the peak for three months, it is deemed to have switched from a bull to a bear market cycle.