The Philippine stock market tumbled down further today due to investor fears that Greece might default soon. The market fell 1.66% yesterday, bringing the index down 50.52 points to 2,989.36.
Overall, 113 stocks dived and only 39 went up. Meanwhile, 32 remained unchanged. All six industries dived with the mining and oil sector experiencing the steepest decline at 3.52% or 819.89 points.
Analysts say that the stock market beared down due to the uncertain future of the Greece economy. The decline has been happening over the past few days and will most likely continue until the European Union decides on a rescue plan. In the meantime, investors will remain fearful and cautious.
In the US, the Dow Jones industrial average index likewise dipped 0.94% or 108.08 points at the start of the weak. While other Asian markets showed varying reactions.
In an interview, personal finance blogger, Fitz Villafuerte says that in these uncertain times, people who would like to invest can still enter the market by adopting the cost averaging strategy as it is a buyer’s market right now.
However, he warns that the stock market is a high risk investment and with the current outlook, it’s always best to have a long investment horizon of more than 3 years to lessen the risk of losing money in the market.