The main index dropped 55.0 points or 0.84 percent to close at 6,523.15 as the Property sector led the retreat while Miners bucked the trend and advanced. Volume thinned to 1.65 billion shares worth P4.14 billion as losers outnumbered gainers 106 to 86 with 42 unchanged.
“Philippine shares plunged steeply as concerns around US economy resurfaced and dampened investor's sentiment,” said Regina Capital Development Corporation Managing Director Luis Limlingan. Philstock Financial Assistant Research Manager Claire Alviar said “the decline in consumer confidence, reflected in the University of Michigan's consumer sentiment reading falling from 63.5 in April to 57.7 in May, combined with the ongoing uncertainties surrounding the US debt ceiling, were weighing on sentiment.”
China Bank Capital Managing Director Juan Paolo Colet said “The market slumped anew as investors moved to reduce risk exposures amidst growing worries about the US debt ceiling.” “We saw major index names sold down towards the end of the trading session, so we expect sentiment to be biased towards a test of the 6,500 support. Any recovery will depend on the BSP’s pronouncements later this week as well as any positive news from US markets,” he added.