Stocks fell for a ninth day, dragging down the benchmark index below the 7,200-point level for the first time in six months, as investors turned jittery amid a tightening race for the US presidency.
The Philippine Stock Exchange index, the 30-company bellwether, dipped 91 points, or 1.3 percent, to close at 7,160.91 Thursday. It lost 8 percent in the past nine trading days, but was still up 3 percent since the start of the year.
The heavier index, representing all shares, also tumbled 39 points, or 0.9 percent, to settle at 4,287.77, on a value turnover of P10.1 billion.
All six sectors posted losses, while only four of the 20 most active stocks ended in the green, led by GT Capital Holdings Inc., the investment company of tycoon George Ty, which rose 2.1 percent to P1,340 and Metropolitan Bank & Trust Co., the second largest lender, which gained 0.3 percent to P77.45. BDO Unibank Inc., the largest lender, went up 0.3 percent to P110.50.
Pilipinas Shell Petroleum Corp. rose 0.3 percent to P67.20, after an initial public offering that raised P18.45 billion.
Meanwhile, Asian stocks struggled again Thursday, with uncertainty over next week’s presidential election sending investors rushing for the sidelines, pushing safe havens such as the yen and gold higher.
With just days to go until the Nov. 8 poll, maverick tycoon Donald Trump has closed what was once considered an unassailable lead over market-favorite Hillary Clinton, upending early confidence.
The former secretary of state is considered by most investors to be a safer, more stable bet than Trump, who is seen as a loose cannon.
And while she is still tipped to win, analysts said the late run by Trump has fired uncertainty, sparking a sell-off across the world.
“The move to take risk off the table continues,” Chris Weston, chief market strategist in Melbourne at IG Ltd., said in an e-mail to clients.
“We have reached a point where there is a buyers’ strike, where money managers have reduced their risk, increased cash allocations within the portfolio and are happy to ride out this mini-storm of uncertainty. This is a perfect breeding ground for short sellers who love the combination of uncertainty and lack of bids.”
In Asian trade, Hong Kong was 0.2 percent down in the afternoon and Singapore gave up 0.3 percent while Sydney closed 0.1 percent lower and Wellington tanked more than one percent.
But Shanghai ended 0.8 percent higher and Seoul put on 0.3 percent. Tokyo was closed for a public holiday.
The rush for safety saw gold prices climb back above $1,300 for the first time since the start of October, while the yen was also stronger. With Bloomberg, AFP