The shockwaves from the Boston marathon bombing elicited fear among
investors in the Philippine market, bringing down the benchmark index by
over a percent as soon as the market opened.
All sectors are already in the red by 10:24 a.m., with the PSEi slumped 75.99 points or 1.11 percent at 6,761.78.
"Markets in the RED on knee-jerk reaction to the Boston Bombing," Jonathan Ravelas, BDO Unibank chief market strategist, noted on his Twitter account.
The bombing in Boston killed three and injured over a 100, in what a White House official suspected as another "act of terror.
In text message to GMA News Online, Ravelas said such incidents compel investors to protect their capital and avert risks in investments.
"Its a risk aversion. An event like this creates a near-term uncertainty. Investors would want to wait for more certainty," he said.
Claire Quiray, an analyst at Regina Capital Development Corporation, noted that despite the good economic fundamentals, threats of war or terror "trigger fear among investors." She cited the simmering conflict between US and North Korea.
"If there's fear, no matter how good the market or economy is, anything can happen. That's why investors are protecting their capital," said Quiray, who is also president of the Stock Market School, a market education initiative of the PSE.
The negative US market also spilled over the local bourse, said Miko Sayo, analyst at Nieves Securities Inc.
Overnight, the Dow Jones Industrial average index was down 265.86 points or 1.79 percent to close at 14.599.20, Reuters reported. Nasdaq also slumped 78.46 points or 2.38 percent at 3,216.49, while the S&P down 332.71 points or 2.7 percent at 12,004.88. — VS, GMA News
All sectors are already in the red by 10:24 a.m., with the PSEi slumped 75.99 points or 1.11 percent at 6,761.78.
"Markets in the RED on knee-jerk reaction to the Boston Bombing," Jonathan Ravelas, BDO Unibank chief market strategist, noted on his Twitter account.
The bombing in Boston killed three and injured over a 100, in what a White House official suspected as another "act of terror.
In text message to GMA News Online, Ravelas said such incidents compel investors to protect their capital and avert risks in investments.
"Its a risk aversion. An event like this creates a near-term uncertainty. Investors would want to wait for more certainty," he said.
Claire Quiray, an analyst at Regina Capital Development Corporation, noted that despite the good economic fundamentals, threats of war or terror "trigger fear among investors." She cited the simmering conflict between US and North Korea.
"If there's fear, no matter how good the market or economy is, anything can happen. That's why investors are protecting their capital," said Quiray, who is also president of the Stock Market School, a market education initiative of the PSE.
The negative US market also spilled over the local bourse, said Miko Sayo, analyst at Nieves Securities Inc.
Overnight, the Dow Jones Industrial average index was down 265.86 points or 1.79 percent to close at 14.599.20, Reuters reported. Nasdaq also slumped 78.46 points or 2.38 percent at 3,216.49, while the S&P down 332.71 points or 2.7 percent at 12,004.88. — VS, GMA News
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