Philippine stock prices slump in the face of global economic concerns

By: Doris C. Dumlao
Philippine Daily Inquirer
1:56 pm | Friday, September 23rd, 2011 

MANILA, Philippines – Most local stock prices dropped sharply on Friday, bringing the main index to its worst single-day slump in three years as concerns over global growth dragged global equities back to bear territory.

The main-share Philippine Stock Exchange index slid by 210.14 points or 5.13 percent to finish at a six-month low of 3,885.96.  This was the steepest daily drop seen by the local bourse since October 27, 2008, when the main index fell by 12.3 percent.

The index has now reversed earlier gains for the year and is now 7.5 percent below its end-2010 level.

All counters were sold down but the mining/oil and property counters were the most battered, outpacing the PSEi’s drop by falling 9.87 percent and 6 percent, respectively.
Turnover was heavy at P8.2 billion, including some block sales. There were nearly 13 stocks that declined for every single stock that advanced.

“The 3Rs continue to feed the bears – recession fears on the global economy, renewed risks in the capital markets especially with possible default of European countries and the continuous retreat of investors to safer investment instruments,” said Astro del Castillo, managing director at local fund management firm First Grade Holdings.

“Fundamentally, we are stable but definitely not immune to the realignment of fund managers,” he said.

Investors dumped index stocks PLDT, Metrobank, Semirara, ICTSI, AGI, EDC, ALI, BDO, SM Investments, Ayala Corp., Philex, BPI, Aboitiz Power, SM Prime, DMCI, San Miguel Corp. and Megaworld.  Likewise heavily sold down were Lepanto A (open only to local investors) and B (open to both local and foreign investors) as well as Atlas.

There was a P1.29 billion block sale on Rizal Commercial Banking Corp. at P29 each and another P69.6 million block transaction on Polar Property Holdings at P2.32 each.

Overnight, the Dow Jones Industrial Index tumbled by 391.01 points or 3.5 percent to 10,733.83 as fears over another US recession fuelled risk aversion. A decline in China’s factory output for the third straight month added to the jitters.

For the first time in two years, the MCSI All-Country World Index of 45 nations went into bear territory.

“Risk-off sessions were seen with intensifying worry about double-dip recession,” said European investment bank Credit Agricole CIB.

“Markets continue to be volatile; growth concern weighs further on sentiment,” it said.

http://business.inquirer.net/20921/philippine-stock-prices-slump-in-the-face-of-global-economic-concerns