The benchmark Philippine Stock Exchange index fell below the 6,500 level on Tuesday due to concerns about the collapse of California-based Silicon Valley Bank.

Shares at the local bourse plunged by 151.12 points to 6,393.33 yesterday — 2.31 percent lower than Monday’s close.

Philstocks Financial Inc. assistant manager for research and online engagement Claire Alviar pointed out that PSEi followed the downward trends of its peers.

“Not just at home, almost all markets were in the red, as investors assessed the impact of SVB’s fallout on the banking sector,” Alviar noted.

“Currently, investors’ sentiment was negative given the situation, especially ahead of the interest rate decision of the Federal Reserve,” she added.

U.S. inflation rate

According to her, investors should also keep an eye on the United States inflation rate, which will be released this week.

Alviar also warned that if the market fails to return above the 6,400 level, trading may be seen around the 6,000 to 6,150 support threshold.

Despite the decline, market participation was notably strong yesterday at P6.32 billion — higher than the month’s P5.68-billion average.

All industries were in the red yesterday with the Holdings registering the biggest loss of 2.51 percent, followed by the Properties, which dropped 2.14 percent.

Meanwhile, only four index members gained in the session — Emperador Inc. had the biggest gain of 1.69 percent. Aboitiz Equity Ventures Inc., on the other hand, lost the most by 4.76 percent.