Middle East jitters keep PSEI plunge

Escalating tensions in the Middle East continued to haunt investors on Tuesday, as Philippine shares saw the largest sell-off this year, with the benchmark index touching the 6,400 level.By the end of the session, the Philippine Stock Exchange Index (PSEi) slid by 2.4 percent, or 157.46 points, to 6,404.97. The broader All Shares Index also slipped by 1.96 percent, or 68.26 points, to 3,409.85.

The market has now dropped for nine consecutive sessions, marking the local bourse’s longest losing streak since October 2016, according to Philstocks Financial Inc.

A total of 15.82 billion shares valued at P7 billion changed hands, stock exchange data showed.

Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., said the decline was “spurred by increased yields and heightened worries over escalating tensions in the Middle East, triggered by Iran’s airstrike on Israel last Saturday.”“The PSEi has now wiped out most of its gains, ending the session with a year-to-date performance of -0.7 percent,” he added.

All subsectors declined as several index heavyweights, including International Container Terminal Services Inc. (ICTSI), SM Investments Corp. and Ayala Corp., dropped by more than 2 percent.

Ayala Land Inc. was the top-traded stock as it fell by 2.68 percent to P27.20 per share.

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It was followed by ICTSI, down 3.62 percent to P314.20 each; SM Investments Corp., down 2.61 percent to P932; BDO Unibank Inc., down 0.61 percent to P146.40; and Ayala Corp., down 2.66 percent to P585 per share.

SM Prime Holdings Inc. went down by 1.01 percent to P29.30; Universal Robina Corp., down 3.76 percent to P96; Metropolitan Bank and Trust Co., down 5.44 percent to P64.30; Jollibee Foods Corp., down 2.90percent to P221; and DigiPlus Interactive Corp., down 9.74 percent to P10.38.

Overall, there were 41 advancers against 154 losers, while 45 companies were unchanged at closing, stock exchange data showed.