PSE index plunges below 6,000 to its worst day since April

Manila, Philippines – Net foreign selling by investors spooked by political uncertainties and the peso’s weakness pushed the bellwether Philippine Stock Exchange (PSEi) index past the 6,000 mark, its worst day in nearly six months.

The sixth straight session in the red – sustaining last week’s fall exacerbated by fresh revelations during a Senate probe that cemented beliefs that graft permeated beyond flood control works – brought the main index plunging to 5,997.60, shedding 0.49 percent more.

“Selling pressure remains strong, with the market still lacking any positive catalyst,” brokerage house Regina Capital said in a note to investors.

“Adding to the bearish sentiment are the ongoing uncertainties in the country and the continued depreciation of the peso against the US dollar, which is dampening confidence among both local and foreign investors,” it added.

The tepid session, with below-market-average market turnover of P3.7 billion net of extraordinary block sales, showed foreigners sold P2.8 billion worth of shares, or a net foreign selling of P405.9 million.

In currency markets, the peso’s depreciation persisted. It settled at P58.145 against the dollar, a fresh two-month low.