By the closing bell, the PSEi was still down 2.42 percent, or 154 points, at 6,206.55, while the broader All Shares Index shed 1.72 percent, or 64.33 points, to 3,684.59.
“The drop was further aggravated by recession fears in the US in the wake of Donald Trump's trade war,” said Alfred Benjamin R. Garcia, research head at AP Securities Inc.
He said selling activity also picked up after news of Duterte’s arrest broke
“The timing of the market drop implies that investors are wary of political instability following the arrest of former President Duterte,” Garcia said.
Knee-jerk reaction: PH stocks expected to recover
“As of yesterday, we already called the market’s reversal from its five-month downtrend,” Garcia said.
“So far, today’s drop has not changed that call, and we still see it as a knee-jerk reaction to the events. But of course, we’ll have to see how this situation develops over the coming week.”
“If conditions remain stable, we could see the market back above 6,300 this week,” he added.
Large caps pull back, BPI weathers the storm
Ayala Land was the top traded stock, declining 6.17 percent to P22.05, followed by International Container Terminal Services, down 5.38 percent to P369 per share.
Bank of the Philippine Islands (BPI) defied the selloff, gaining 0.68 percent to P132.80. It was followed by BDO Unibank, down 2.03 percent to P154.80, while Jollibee Foods Corp. closed unchanged at P264 per share.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
