Investor pessimism drags index to 3-month low

idespread pessimism in the local bourse dragged the main index to its three month low yesterday, nearly erasing year to date gains.

The Philippine Stock Exchange index PSEi sank .0 percent or 1 .5 points to close at 5,88 . 0, its lowest since ending at 5, 8.0 on Aug. 8. t is the sixth consecutive day the bell wether index ended in the red.

The broader All Shares index retreated 1.85 percent or 8. points to , 1 .58.

e broke down the support level o ,000 and then the selling continued,” Freya . atividad, investment analyst at Papa Securities Corp., said in a phone interview.

atividad said the market has been on a downtrend since Super Typhoon olanda hit the Philippines hard.

At this point, nothing appears able to spur confidence in equities with the index’ sustained decline urther oddering pessimism, even as liquidity seems to begin to dry up,” said Justino Calaycay Jr., analyst at Accord Capital Equities Corp.

Calaycay said opening trades showed a glim mer o hope but optimism wilted, pushing the main index to close at its intraday low. PSEi ended 01 at 5,81 . .

Even the advance in all St. ailed to lend confidence in the local market. The Dow Jones ndustrial average inched up 0.0 percent or 5. points to 1 , 0 5.5 , while the broader Standard & Poor’s 500 index rose 0.18 percent or . 8 points to 1,808. amid indications the US Federal Reserve’s tapering program will be gradual.