Stock index suffers biggest point-loss since 2001

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Stock index suffers biggest point-loss since 2001

Posted: 1:47 AM | May 19, 2006

 

XFN-Asia

 

SHARE prices closed sharply lower Thursday, with the main index suffering from its biggest single-day point loss in over five years.

 

Investors sold down stocks after Wall Street's slump overnight following inflation data which raised chances of further hike in US interest rates, dealers said.

 

The composite index finished down 84.83 points or 3.44 percent at 2,378.74. That was its biggest one-day loss since January 17, 2001 when it shed 93.16 points. It moved between 2,368.85 and 2,463.57 points.

 

The broader all-shares index retreated 45.37 points to 1,481.05.

 

Decliners trounced advancers 106 to 9, with 30 stocks closing flat.

 

Volume reached 3.74 billion shares worth 2.39 billion pesos.

 

"It's a knee-jerk reaction to Wall Street's disappointing performance," said Westlink Global Equities Inc. research head James Lago.

 

Citiseconline analyst Mark Canizares said the market's slide was also necessary after the recent run-up, which brought the composite index to near seven-year highs last week.

 

"The overpowering theme right now is that recent strong gains have pushed the market to run away from fundamentals. Now it has to do only one of two things, either fundamentals catch up or prices will have to move back to their fair value levels," he said.

 

Philippine Long Distance Telephone Co., the most briskly traded stock, closed down 100 pesos or 4.76 percent at 2,000 with 156,770 shares exchanged.

 

Globe Telecom Inc. fell 30 pesos to 965.

 

Ayala Corp. retreated 12.50 pesos to 420, while unit Ayala Land Inc. was down 0.75 at 14.

 

The banking sector also retreated with Bank of the Philippine Islands declining 1.50 pesos to 64.50, while Metropolitan Bank & Trust Co. eased 1.50 to 38.50.