Stocks fall on Fed worries

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Local stocks tumbled for the second straight session Friday as jitters over the tapering of US Federal Reserve’s easy money policy intensified following a better-than-expected American jobs data.

The main-share Philippine Stock Exchange slipped by 54.76 points or 0.83 percent to close at 6,525,95, tracking the bloodbath across regional markets.

For the week, the index was still a net gainer of 121.72 points or 1.9 percent.

Dealers said sentiment was affected by escalating talks over US Fed tapering, which likewise caused an overnight slump in Wall Street. A surprise improvement in US jobless claims alongside rising inflation boosted expectations that the Fed would indeed reduce its $85-billion monthly asset buying starting next month.

Value turnover at the local market yesterday amounted to P5.58 billion. There were only 52 advancers against 92 decliners while 40 stocks were unchanged.

Investors also continued to factor in global fund managers’ adjustment arising from the latest quarterly MSCI index review, which resulted in a cut on SM Investments’ weight. Overall, the Philippines’ weight on MSCI’s emerging market index was pared down to 0.95 percent from 1.02 percent effective Sept. 2.

SM Investments (-1.18 percent) was the second most actively traded stock. “The reduction of MSCI weighting for SM has nothing to do with its business fundamentals. The fall in the share price is an opportunity to buy a growth stock at cheaper price levels,” said Jose Mari Lacson, head of research at Campos Lanuza & Co. Doris C. Dumlao

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  • oh_noh

    stocks fall and yet the peso remains strong…

    who in their right minds think that some agencies are manipulating the forex?!?! :-D

    • spiritnsoul700

      Of cos they cant manipulate the forex, but when it comes to investing business in the Philippines, where your government , officials and even your local banks are manipulators as they tried to manipulate, foreign investments/business

  • Kai Yoton

    PNoy once proclaimed that the stock market’s rise was due to his administration’s efforts. He’s A Big Fat Liar.

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