Bank crash jitters pull index down

Shares at the local bourse dropped by 45.43 points or 6,544.45 or 0.69 percent lower than last week’s closing

Silicon Valley Bank, the 16th largest bank in the United States, was closed on Friday by regulators, according to the US Federal Deposit Insurance Corporation. A meal deliveryman walks to the headquarters. | Li Jianguo/Xinhua

The benchmark Philippine Stock Exchange index slid on the first trading day of the week due to the spillover of the negative sentiments overseas following the collapse of Silicon Valley Bank.

Shares at the local bourse on Monday dropped by 45.43 points or 6,544.45 or 0.69 percent lower than last week’s closing.

Philstocks Financial Inc. assistant manager for research and online engagement Claire Alviar said the decline was also triggered by the investors’ sentiment on the pending Bangko Sentral ng Pilipinas and Federal Reserve on interest rates decisions.

“Chart-wise, the market was having a hard time returning above the 6,600 level,” Alviar added.

Weaker than the average

Currently, trading ranges from 6,400 to 6,800. The net market value turnover on Monday, on the other hand, was at P4.36 billion — weaker than the P5.61 billion average for this month so far.

Meanwhile, for analyst Luis Limlingan, Head of Sales at Regina Capital, investors also have to watch out for the release of the January Balance of Trade, Cash Remittances, and Budget Balance figures.

Notably, Holdings and Miners were the only gainers, whose shares were up by 0.44 percent and 0.01 percent, respectively.

Meanwhile, Financials had the biggest loss of 2.04 percent amid concerns in the banking sector.

Aboitiz Equity Ventures Inc. was at the top after it gained 4.37 percent to P52.50 as investors bought before the ex-date to be entitled to its cash dividends, while Bank of the Philippine Islands lost the most by 3.58 percent to P105.10.

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