PH shares fall 3.5% amid foreign selling

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THE Philippine Stock Exchange index (PSEi) fell sharply on Friday, shedding 3.5 percent or 239.22 points to close at 6,612.62.

Friday’s fall extended the week’s losses to 6.1 percent as foreign players continued to exit the Philippine market.

This was the stock market’s third weekly drop this year.

Meanwhile, Asian stock markets were mixed Friday after Wall Street rebounded from its biggest loss in nearly three months, while Japan reported December factory output weakened.

Shanghai and Hong Kong advanced while Tokyo and Seoul declined.

Overnight, Wall Street’s benchmark S&P 500 index gained one percent, recovering some of its loss from the previous day’s 2.6 percent fall after American unemployment data were better than expected.

U.S. markets were roiled by a spate of trading by small investors of video game vendor GameStop that hurt hedge funds that bet the stock would fall. Brokers suspended some options trading in that and other stocks.

Elsewhere, investors were watching coronavirus infection spikes in Europe and Asia, renewed travel curbs and negotiations in Washington over President Joe Biden’s proposed $1.9 trillion economic aid

package.

“We are still moving towards a recovery from the pandemic, just a heck of a lot bumpier than anyone had expected,” said Stephen Innes of Axi in a report. “Yet the recent stock market washout may have put the path forward on a cleaner footing.” / CSL with AP