The local stock market plunged as investors took profits on the last day of the month of August amid continuing worries about the economies of the US, China, and the Philippines.
The main index fell 120.04 points or 1.91 percent to close at 6,175.25 as the Property counter plummeted while only the Mining and Oil counter managed to hold its ground. Volume jumped to 1.36 billion shares worth P9.75 billion as losers beat gainers 104 to 71 with 47 unchanged.
“Local investors followed the movement of the latest MSCI rebalancing to end the month of August, while others digested weaker-than-expected payrolls data and annual gross domestic product growth forecast that nevertheless suggested the Fed could soon be done hiking rates, boosting equities,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
Philstocks Financial Research and Engagement Officer Mikhail Plopenio said, “the local market declined as investors took profits after a 2-day rally. Worries over China’s economy weighed on sentiment as the country’s official manufacturing PMI for August came in at 49.7, showing a fifth straight month of contraction.”
“The lack of a positive catalyst also added to the sell off. The local bourse opened and stayed in the red territory for the whole session,” he noted.
China Bank Capital Corporation Managing Director Juan Paolo Colet said, “the index retreated below the 6,200 level after the market succumbed to heavy month-end selling by institutional investors as part of window dressing."
"Traders also opted to take profits or cut losses ahead of US employment data to be released on Friday. News flows further soured sentiment after reports of lower Philippine domestic trade and the fifth straight month of contraction in Chinese manufacturing activity,” he added.