Slowdown fears drive PSEi plunge

Slowdown fears drive PSEi plunge

Stock market recoiled on Friday joining a global rout generated by a renewed worry of a global economic slowdown.

The Philippine Stock Exchange index (PSEi) benchmark fell 1.07 percent or 84.68 points closed at 7,797.11 while the broader All Shares weakened by 0.59 percent or 28.74 points to finish at 4,817.22.

Matthew Cabangon, president of AAA Southeast Equities Inc. remarked that market players were sold on news that Chinese exports had dipped by more than 20 percent in February.

Europe’s Central Bank decision on Thursday to half its growth and inflation forecasts further increased trade pessimism.

Wall Street dropped overnight following the ECB’s news taking along the Nasdaq down the most by 1.13 percent, followed by S&P 500 (0.81 percent) and the Dow (0.78 percent).

European markets also clear-fell overnight and the losses stretched to Asia on Friday, with Shanghai registering the steepest drop of 4.40 percent; Hong Kong was down 1.9 percent and Tokyo ended two percent lower with esteemed growth figures incapable of helping the Nikkei 225. Sydney dropped one percent and Singapore 0.9 percent, with Seoul 1.3 percent off and Taipei 0.7 percent down. Meanwhile, early Friday trade showed London, Paris and Frankfurt respectively fell 0.7 percent.

“We need some material good news to come out before we go back to the PSEi’s year-to-date highs around 8,100 to 8,200. Until something materializes, we advise investors to remain cautious,” Cabangon added.

Locally, all sectoral results ended in the red with holding firms down the most by 1.41 percent.

More than a 1.09 billion share valued at P5.3 billion were traded. Losers led winners, 111 to 48, while 48 issues remained unmoved.

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