The benchmark Philippine Stock Exchange index (PSEi) retreated 31.53 points to close at 6,952.08 from Monday’s 6,983.61. It was also 3.85 percent lower than the previous year’s close of 7,230.57. File photo
MANILA, Philippines – Philippine stocks tumbled yesterday, marking the last trading day of the year in negative territory to which analysts attributed to a combination of global and local developments that influenced the market in 2015.
The benchmark Philippine Stock Exchange index (PSEi) retreated 31.53 points to close at 6,952.08 from Monday’s 6,983.61. It was also 3.85 percent lower than the previous year’s close of 7,230.57.
Likewise, the broader All Shares index finished at 3,990.47, down 5.69 points or 0.14 percent from Monday’s close.
All other indexes except for two barometers closed in negative territory, with losers led by the property and holding firms, which declined by 0.64 and 0.50 percent, respectively.
Value turnover was P6.46 billion.
IGC Securities Inc. president Ismael Cruz said while the index closed in negative territory, the market is still on a bull run. “While it ended up being a down year, we should take note the bull run is still intact,” he said.
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Cruz said a credit rating upgrade in the near future may boost the market.
Fitch Ratings said the Philippines could receive another upgrade if the reforms undertaken under the leadership of President Aquino would be sustained in the next administration.
“Increased confidence that these trends will be sustained under the next administration after the 2016 presidential elections would support the case for an upgrade,” Fitch said.
Fitch said the strong growth, a structural current account surplus and ongoing fiscal policy discipline are driving a steady improvement in the Philippines’ balance sheet.
Last September, Fitch raised the country’s outlook to positive from stable as it affirmed the credit rating at ‘BBB-” or minimum investment grade on the back of the country’s strong macroeconomic fundamentals as well as the improved government standards and competitiveness indicators under the Aquino administration.
Justino Calaycay of Philstocks Financial said yesterday’s closing was expected even as investors had hoped for the best.
“It’s a combination of what has happened throughout the year,” Calaycay said.
Likewise, Luis Limlingan, managing director at Regina Capital said global factors such as the economic slowdown in China affected the overall ending of the market for the year.