PSE Index Plunges Below Support Level As Bearish Sentiment Pervades

The Philippine Stock Exchange (PSE) Index slid below its critical support level today, heightening bearish sentiment in a period typically expected to see a Christmas rally.

The Philippine Stock Exchange (PSE) Index, November 28, 2024

The index closed at 6,638.54 points, down by 64.05 points or 0.96%.

All sub-indices ended in the red, with the main index dipping to an intraday low of 6,613.07 points before bargain-hunting tempered losses. However, the breach of the 6,700 support level was compounded by sustained foreign selling, which again exceeded the ₱1 billion mark.

The Industrial sector posted the steepest loss, dropping 2.10%, followed by Property at 1.48% and Financials at 0.71%. Other sectors saw declines as well: Holding Firms fell 0.68%, Services slipped 0.03%, and Mining and Oil edged lower by 0.02%.

The market opened above the support level at 6,702.93 points, briefly rising by 9 points before sliding to its lowest point of the session.

Value turnover reached ₱4.91 billion, with International Container Terminal Services, Inc. (ICTSI) leading activity, accounting for ₱1.13 billion and closing unchanged.

Net foreign selling hit ₱1.168 billion, with foreign outflows totaling ₱2.891 billion against foreign inflows of ₱1.723 billion. Market breadth reflected the overall bearish mood, with 120 decliners, 69 advancers, and 53 issues unchanged.

Prominent decliners included BDO Unibank, Bank of the Philippine Islands (BPI), Ayala Land, SM Prime, Ayala Corporation, Universal Robina, Jollibee Foods, Metrobank, PNB, and ACEN Corporation.

Figaro Coffee, Meralco, Manila Water, GT Capital, Monde Nissin, Vitarich, Roxas and Co., Aboitiz Equity, JG Summit, AREIT, Citicore REIT, Robinsons Land, Cebu Air, PAL Holdings, Belle Corporation, Bloomberry, Phil. Seven, SSI Group, GMA-7, OceanaGold, Atlas Mining, and Philex Mining also closed the day in the red.

Among the gainers, Market Bellwether rose by ₱1 to close at ₱880. Other notable advancers included PLDT, DITO CME, Bright Kindle, Security Bank, Union Bank, CEMEX Holdings, Apex Mining, Nickel Asia, DigiPlus, Megawide, Aboitiz Power, Philodrill, and DoubleDragon.

The index’s breach of the 6,700 threshold adds to concerns about the market’s trajectory. Analysts note that unless foreign selling eases and positive catalysts emerge, the bearish trend may persist, dampening hopes for a late-year recovery.