The local stock market suffered a bloodbath Monday that saw the index crashing below the 6,500 level amid fears that the US economy may be heading for a recession.
The 30-company Philippine Stock Exchange index plummeted by 170.57 points, or 2.58 percent, to close at 6,434.72.
The broader all-shares index also plunged by 80.43 points, or 2.24 percent, to settle at 3,516.47.
Veteran stockbroker Jonathan Ravelas said global stocks slid as investors questioned the US Federal Reserve’s policy response to economic slowdown. He said investors were now flocking to bonds for safety.
“Watch for break below 6,400 as 6,000 levels at risk,” Ravelas said.
All sub-indices ended in the red. Industrial suffered the biggest decline, dropping by 3.53 percent followed by property, which lost 3.35 percent.
All index members ended in the red with Universal Robina Corp. dropping 8.7 percent. There were only 34 advancers versus 175 decliners, while 45 stocks closed unchanged. Value turnover reached P5.17 billion.
Meanwhile, the PSEi composition would remain unchanged based on the regular index review covering the July 2023 to June 2024.
The PSE said the current index members remained among the top stocks in terms of market capitalization, liquidity and free float level.
“The index review ensures that market barometers feature the most qualified stocks based on the set criteria,” said PSE president and chief executive Ramon Monzon.
The constituents of the PSE Dividend Yield and Holding Firms indices will also remain unchanged while the rest of the indices will see updates in their composition.
For the 20-member PSE MidCap index, DoubleDragon Corp. and DigiPlus Interactive Corp. (PLUS) will take the place of Cebu Air Inc. and Shell Pilipinas Corp.
The industrial index will see the addition of Alternergy Holdings Corp., Roxas and Company Inc., and RFM Corp. and the removal of Raslag Corp.
The property index will see the inclusion of VistaREIT Inc. and the exclusion of D.M. Wenceslao & Associates Inc. and Ever-Gotesco Resources and Holdings Inc.
Pacific Online Systems Corp., PLUS and STI Education Systems Holdings, Inc. will all become members of the services index, while Chelsea Logistics and Infrastructure Holdings Corp. and Premiere Horizon Alliance Corp. will be removed.
Asia United Bank Corp. and the A and B shares of Benguet Corp. will become constituents of the financials and mining and oil indices, respectively.
The new composition of indices will take effect on Aug. 12, 2024.
