Share prices fell Tuesday as investors turned risk-averse amid corruption revelations in government flood-control projects.
The Philippine Stock Exchange index (PSEi) dropped 96.29 points, or 1.55 percent, to close at 6,118.54, while the broader All Shares shed 35.62 points, or 0.96 percent, to 3,693.67.
Losers outnumbered gainers, 129 to 78, with 56 issues unchanged.
Philstocks Financial research manager Japhet Tantiangco said the market plunge reflected dismay over the ghost project controversy.
“This comes following the latest developments in the Senate hearing where further elaborations were made, including the alleged involvement of certain Congress officials,” he said.
Trade value hit P22.69 billion, boosted by two special block sales — P8.19 billion for Metropolitan Bank & Trust Co. (MBT) and P7.75 billion for RL Commercial REIT Inc.
MBT shares dropped 2.86 percent or P2 per share to close at P68, with more than P163.4 million in total trading value.
Foreign funds were net buyers of P7.05 billion, with purchases of P10.78 billion outpacing sales of P3.73 billion.
Aniceto Pangan of Diversified Securities Inc. said Sunday’s protest rallies have unsettled investors, since rioters in black face masks marred the rally late in the afternoon around the Presidential Palace.
“The riot was on Sunday, but news came out yesterday on how extensive it was, thus the reaction was delayed somewhat,” he noted.
Regina Capital’s Luis Limlingan added that the market’s fall, despite expectations of more rate cuts and stable inflation, “reflects the prevailing bearish sentiment among participants.”
