Stocks trade under 7,000 mark today, attempt recovery

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Metro Manila (CNN Philippines, June 22) — The stock market traded under the 7,000 mark today, hitting a fresh one-year low.

Intraday trading was at 6,923.67 at its lowest, with bargain hunting leading to a recovery of 7,063.20 by the end of the day.

This is still 34.95 points lower than yesterday's close of 7,098.15 points.

The property sub-index and the mining and oil sub-index recovered from yesterday's losses by 65% and 126% respectively.

The rest of the sub-indices are still in the red.

"Philippine stocks fell below the 7000 level for the first time this year, however bargain hunting kept the market from sliding much further," said Luis Limlingan, managing director of Regina Capital Development Corp.

He added that the Philippine Stock Exchange was brought down by the U.S. stock market, which also incurred huge losses this week.

"Local issues were sold down heavily in the morning due to a number of reasons. U.S. stocks closed solidly lower on Thursday (U.S. time), with major indexes suffering one of their worst sessions of the month and the Dow Jones Industrial Average extending its losing streak to an eighth day as Daimler AG's profit warning fed into investor concern over the outlook for global trade and growth," Limlingan added.

With the market breaching past the 7,000 mark, chief market strategist of BDO Unionbank Jonathan Ravelas identified two levels that the market will find difficulty recovering from.

"The next key support levels are 6,500 & 6,800 levels, respectively," Ravelas said on twitter.