Negative reports send stocks to 2-mo low

Closer to home, investors were worried as the manufacturing sector of the world’s second largest economy, China, contracted for the first time in seven months due to weak external demand.

“Of course you have to add the fact that the local market has been up for much of the year,” Calaycay said, adding that it is already ripe for a correction.

Locally, several blue chips were unloaded by investors.

Ayala Land Inc. (-7.26 percent) was sold off following an explosion in its upscale condominium Two Serendra in Taguig that killed three people and injured at least five others.

Stocks of tycoon Henry Sy’s SM Investments Corp. (-3.49 percent) and SM Prime Holdings Inc. (-6.46 percent) also led losers. On Friday, the SM Group announced the merger of its property firms, making SM Prime a $14-billion behemoth and the largest property firm in the country.

Only a handful stocks like GT Capital Holdings Inc. (up 1.87 percent) and Puregold Price Club Inc. (up 4.35 percent) bucked the trend.

All local subindices were in the red, led by property firms that plunged 4.96 percent or 143.12 points to 2,742.77.

Turnover value normalized to P16.58 billion from P85.25 billion on Friday that was boosted by the P64-billion share swap between Puregold and Cosco Capital.

Decliners dominated advancers, 138 to 33, while 33 stocks did not change.

“We may see some green in the coming days,” Calaycay said, adding that investors are way too concerned of the easing in the US stimulus program.