The PSEi dropped to 7,252.40 on its first day of trading after the all-saints day 4 day weekend, November 2. The drop was 152.40 points or 2.05% from the October 28 close at 7,404.80.
The all shares index also dropped by 71.75 points or 1.63% to close at 4,326.83.
The decline is being attributed to risk-off sentiment ahead of the US presidential elections next week. Another factor contributing to the drop is the expectations of rate hike hints from the Fed as it wrapped up its Nov. 1-2 meeting yesterday.
According to analysts, the market is on risk-off mode primarily due to the US presidential elections next week. Although central bankers are unlikely to raise rates, they will hint at a rate hike in their December meeting.
Also in-line with the US presidential elections next week, the market drop can also be attributed to worries over a Donald Trump win as US president.
As I am writing this blog post, the PSEi is at the 7,168 level, still lower than yesterday’s close.
These seem like a lot of gloom and doom in the PSEi, but again, as members of the Truly Rich Club, and as investors, it’s during these times that we celebrate, we can buy good companies at very low prices.