Wednesday, November 02, 2011

PHL shares fall on heels of losses overseas

VICTOR D. SOLLORANO, GMA News
11/02/2011 | 01:30 PM

On the heels of a general downtrend in global markets, Philippine shares fell in moderate trading marked by plenty of cross transactions, traders said Wednesday.

The main Philippine Stock Exchange index lots 73.13 points or 1.69 percent to close at 4,260.41.

Over 4.679 billion shares worth P4.684 billion changed hands in Wednesday’s session.

While the Philippine market followed the general global trend on fears of contagion from the euro debt crisis, “there is no panic selling and most of the volumes were built on cross transactions," said trader Sonia Lumba of the brokerage firm Yao and Zialcita Inc.

Cross transactions are trades with the buying and selling of shares done by a single broker. “It’ does not reflect a true market sentiment," according to Yao and Zialcita’s trader.

The market was closed for a holiday Monday and Tuesday, and investors found no incentive buy and push the market higher after they were greeted with the news from Wall Street, according to a trader with DW Capital Inc.

Asian shares fell and the euro hovered near three-week lows against the dollar on Wednesday, as investors shed riskier assets after Greece's abrupt call for a referendum rekindled fears about the viability of a European debt deal reached just last week," according to a Reuters report.

Overnight on Wall Street, the Dow Jones industrial average dropped 259.93 points, or 2.17 percent, to 11,695.08, according to a separate Reuters report.

Decliners led winners 112 to 30, with 21 issues closing unchanged in the Philippine bourse. — GMA News  

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