After a recovery on Tuesday, the Philippine Stock Exchange index, the local barometer, plunged anew due to negative sentiments abroad and the persistent peso depreciation.
PSEi ended Wednesday trading at 6,554.08, or a 155.52 points or 2.32 percent plunge.
"The peso is depreciating, trading at the 57 levels. This has negative effects on our country, especially since we are heavy on imports, making goods more costly," Philstocks Financial Inc. assistant manager for research and online engagement Claire Alviar said.
"Moreover, weak global economic growth weighs on sentiment after China's trade data missed estimates while recession fears grow in Europe," she added.
Market turnover yesterday remained low at only P4.7 billion. All sectors were in the red territory, with Holdings leading them after it dropped by 3.18 percent.
Only Universal Robina Corporation and Manila Electric Company posted gains, up by 1.21 percent and 0.70 percent, respectively. On the other hand, Wilcon Depot, Inc. was at the bottom, losing 5.69 percent.
Tighter Fed tack
Investors tried to make a narrative on how tight the US Federal Reserve's campaign would be, given the strong economic data and surging bond yield, according to Regina Capital Development Corp. managing director Luis Limlingan.
The 10-year U.S. Treasury yield jumped to its highest level since June. The rate on the 30-year Treasury also closed at its highest level since 2014.
