The local stock market plunged with other regional bourses on growing fears of a US recession.
The main index fell 170.57 points or 2.58 percent to 6,434.73 with the Industrial and Property sectors leading the retreat across the board. Volume rose to 638 million shares worth P5.64 billion as losers swept gainers 175 to 34 with 45 unchanged.
“Philippine shares fell back to the 6,400 territory as recession fears surrounding the US have made investors worrisome of a hard landing,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He added that “Japan experienced one of the worst corrections since the recent 1987 crash as many are still digesting the impact of the BOJ raising interest rates.”
Philstocks Financial Assistant Research Manager Claire Alviar said that “together with other Asian markets, the local bourse tumbled as the disappointing jobs report raised fears that the Federal Reserve's decision to keep interest rates unchanged could lead to a recession in the US.”
“In Asia, Japan’s Nikkei has erased all its gains this year and is now trading at a loss year-to-date, while South Korea’s Kospi briefly halted trading after triggering circuit breakers," she noted.
“Back at home, sentiment was further dampened as the inflation rate in July could potentially be higher than the preceding month’s figure and the government’s target of 2-4 percent,” Alviar added.