The Philippine stock market experienced a significant decline upon resuming trading after a temporary suspension caused by Super Typhoon Carina. Share prices felt the impact of the storm, leading to a sharp drop in the market.
Benchmark Index and Broader Market Decline
The benchmark Philippine Stock Exchange index (PSEi) plummeted by 1.23 percent, losing 82.85 points to close at 6,670.27. The broader All Shares index also suffered, shedding 0.87 percent or 31.67 points to settle at 3,606.81.
Economic Concerns and Wall Street Selloff
Mikhail Plopenio, research and engagement officer at Philstocks Financial, attributed the market’s downturn to concerns about the economic damage inflicted by Super Typhoon Carina on the country.
The local market also followed Wall Street’s overnight selloff, triggered by disappointing second-quarter earnings from the tech sector.
Tech-Driven Selloff Impacts Regional Equities
Luis Limlingan of Regina Capital explained, “Philippine shares mirrored the sentiment of regional equities, declining more than one percent after resuming trading following the Typhoon Carina suspension.
Wall Street experienced a sharp tech-driven selloff on Wednesday due to underwhelming quarterly reports from major tech companies like Alphabet and Tesla.”
Reduced Trading Volume and Sectoral Losses
Net market value turnover further decreased to P3.74 billion from P4 billion on the previous Tuesday. Most sectors ended in the red, with mining and oil suffering the most, declining by 3.78 percent.
Holding firms, property, and services also experienced losses exceeding one percent each.
Negative Market Breadth
Market breadth was negative, with decliners outnumbering advancers 121 to 59, while 54 issues remained unchanged.