Profit-taking after last week’s rally brought the local bourse barometer, the Philippine Stock Exchange Index, to 6,704.41, dropping 159.45 points or 2.32 percent on the first trading day of the week.
Claire Alviar, Philstocks Financial Inc. assistant manager for research and online engagement, said the negative sentiment was “on the back of the expectation that the US Federal Reserve could remain hawkish, which may weaken the peso.”
“Moreover, supply concerns over some food items weighed on sentiment. We are seeing the support at 6,600 while the resistance would be at 7,000 to 7,100,” she said.
The net market turnover on Monday was recorded at P4.96 billion, way lower than the P6.38 billion month-to-date average this August.
All sectors were in the red with Holdings having the biggest loss at 3.46 percent. The index losers were led by Aboitiz Equity Ventures Inc., GT Capital Inc., Ayala Corporation and SM Investments Corp.
Meanwhile, Emperador Inc. gained the most, by 4.37 percent to P21.50.
Doubts rise on recovery pace
Regina Capital Development Corp. managing director Luis Limlingan said stocks dropped on rekindled rate hike fears that added concerns to the pace of the global economic recovery.
Oil steadied on Friday, but ended the week lower on recession jitters.
Brent crude futures closed at $96.72 per barrel, while the US West Texas Intermediate crude settled at $90.77/bbl.
Both benchmarks fell about 1.5 percent on the week. This week’s highlight is Fed Chairperson Jerome Powell’s comments on inflation at the annual Jackson Hole Economic Symposium.