Quantcast
Latest Stories

Local stock prices, peso fall

By

Philippine Stock Index, August 22, 2013. Screengrab from http://www.pse.com.ph/stockMarket/home.html

MANILA, Philippines — The local financial markets slumped on Thursday as international fund managers pulled funds out of emerging markets as the tapering of easy US money policy appeared imminent.

The main-share Philippine Stock Exchange index lost 389.22 points or 5.96 percent to close at 6,136.73 as investors scrambled to unload local blue chips, many of which have hit record-high valuations in earlier months.

The index slipped by as much as 7 percent in earlier trade, pricing in the gloomy sentiment on emerging markets that has bludgeoned regional markets in the last three days that local markets were shutdown by inclement weather and a national holiday.

Local bond yields also rose while the peso fell to as low as 44.17 against the US dollar in morning trade from Friday’s close of 43.64. Weighted average was at 44.087 while total value turnout at the spot foreign exchange market amounted to $749.5 million.

Across the region, fund managers were pulling investments out of emerging markets in anticipation of the withdrawal of massive liquidity from the US Federal Reserve.

The release of Federal Open Market Committee minutes Wednesday night affirmed the view of tapering the $85 billion monthly asset buying, also referred to as quantitative easing, but the Fed has yet to signal the exact timing. Many are pricing the tapering to begin by next month.

“It’s not an issue of if. It’s an issue of when,” Bank of the Philippine Islands president Cezar Consing said on the sidelines of the BPI-FinanceAsia 5th Annual Treasury and CFO Summit. He said this shakeout was a reminder to investors not to rely too much on liquidity to support asset prices.

In the aftermath of the Lehman Brothers’ collapse in 2008, Consing said,  monetary regulators around the world, especially those in the major economies, were very much “in sync” in injecting additional liquidity to address a credit crunch. “The challenge now is withdrawal is not in sync, and that’s what makes markets volatile,” he said.

BPI executive vice president and treasurer Antonio Paner said the peso would trade at the 44 levels but recover to 43-ish levels against the US dollar by yearend, supported by strong macroeconomic fundamentals and resilient foreign exchange flows.

At the local stock market, the most heavily battered stock was SM Prime, which slid by 10.61 percent. AGI and AEV plunged by over 9 percent while SMIC, Megaworld, ALI and MPI all faltered by over 8 percent. Ayala Corp., BDO and Meralco slipped by over 6 percent.

“After three days closed, the market played catch up – or maybe catch down – with other markets in the region. Funds are flowing out of the region and into the US and European markets. Local investors should expect a wild ride in the coming sessions,” said PNB Securities deputy chief Manuel Lisbona.

Lisbona said the PSEi’s next support would be at 6,000 initially and if broken, might retest 5,800 or basically back to where the local index started for the year.

The PSEi was the most heavily battered Asian index as Thursday’s morning trade after as regional peers already took the brunt of the capital reversal in the last three days.

Originally posted at 11:13 am | Thursday, August 22, 2013


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Business , economy , Finance , Markets and Exchanges , Philippine Stock Exchange , PSEi , Stock Market

  • OFW_Investor

    The sooner the FED tapers off, the better. Bring it on.
    Rational Investors should be excited with a further “plunge” in share prices.

  • txtman

    ___________ KAILAN KAYA? ______
    .
    MATATAPOS ANG DYNASTIES NG MGA OLIGARDS?
    ____ KAYA WALANG JOBS SA PINAS
    ____ KAYA WALANG NEW INVESTORS SA PINAS
    ____ KAYA ANG MAHAL KORYENTE, TELECOM, RAW MATERIALS ETC.
    .
    MANGARAP NA LANG KAYO
    KASI NGA
    MGA NAGPAPATAKBO SA GOBYERNO
    ____ AY MGA KAMAG-ANAK NG MGA OLIGARDS
    ____ MGA MAY-ARI NG MEDIA, MGA OLIGARDS
    .
    YEAR-IN & YEAR-OUT
    SINASABI FOCUS SA JOB CREATION
    PERO, THE CORRUPT POLITICIANS JUST IGNORE IT
    SILA LANG KASI LALONG YUMAYAMAN
    PITIFUL

  • sanjuan683

    Pinabagsak na naman ang peso, pagdating ng pasko maliit na lang an palitan. hahahahahaha

  • lawakanangpagiisip

    Nung ni downgrade ang credit rating ng US ng S&P last August 1, 2011 dahil sa fiscal cliff at malaking debt, bumagsak ang stock market. Nung gumanda naman ang economy ng US, at titigilan na nila yung QE na yan, bagsak na naman ang stock market. Mukhang ang down ng market na to eh hindi magtatagal, tataas ang value ng dollar vs peso, which in turn, tataas value ng export natin pero mamahal naman ang import natin. Hmmmm… mukhang mas makikinabang tayo sa mababang value ng peso, mas marami pera OFW, at mas dadami ang BPO nyan. Maraming mawawalang trabaho sa US dahil ipapa outsource yan for sure papunta dito sa Pinas na mas mura ang sahod. Tataas ulet ang unemployment sa US nyan for sure, sa tingin ko, hindi sustainable yan, mag QE ulet ang US.

  • Pitbulldog

    I don’t care if stocks would rise or fall. Ibalik nyo na lang sa 48 to 1 ang dollar exchange rate. Ganon naman dati, mas mura pa nga bilihin non.

    • gisingpinas

      55 dapat



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • How other faiths observe Holy Week
  • No noise, partying in Boracay on Good Friday
  • More legal woes for Cedric Lee
  • NATO ups military presence amid Russian threat
  • DOH issues official statement on confirmed case of MERS-CoV
  • Sports

  • Tenacious Iran frustrates Qatar to retain Asian Club volleyball crown
  • Floyd Mayweather is ESPN’s top-paid athlete
  • Pistorius trial: Judge sets 2-week adjournment
  • China, Taiwan rout foes for 3rd, 5th places in Asian Club volleyball
  • Ginebra’s new import Freeman arrives, makes PBA return vs ROS
  • Lifestyle

  • Are your favorite malls open this Holy Week break?
  • Celebrate Easter Sunday at Buddha-Bar Manila
  • Moriones feast: A slow, steady transformation
  • Weaving ‘palaspas’ a tradition kept alive in Tayabas City
  • Finalists announced for best translated books
  • Entertainment

  • Filipino rock icons to hold silent concert
  • Mommy Dionisia Pacquiao’s greatest hits
  • Deniece Cornejo posts bail—report
  • Miley Cyrus hospitalized, cancels US concert
  • Otaku Summer Jam 2014: Summer’s hottest J-rock/Cosplay event
  • Business

  • Russian economy hit by Ukraine turmoil
  • PSEi firms up ahead of Lenten break
  • I-Remit teams up with Lakhoo for remittances from Oman
  • Megawide nets P1.4 B in 2013
  • Longer TRO sought on rate hike
  • Technology

  • Smart phone apps and sites perfect for the Holy Week
  • Tech company: Change passwords or suffer ‘Heartbleed’
  • Filling the digital talent gap
  • SSS to shut down website for Holy Week
  • Another reason to quit social media this Holy Week: your safety
  • Opinion

  • We may never know
  • Couple of things
  • Mommy D’s magic
  • Stop bizarre and bloody Good Friday rituals
  • Holy Week taboos
  • Global Nation

  • Netizens welcome Japan’s visa-free travel plan
  • Visa-free travel by Filipinos to Japan still a proposal
  • Visa-free travel to Japan could boost tourism
  • 2 PCG men ordered arrested over Balintang Channel shooting
  • US Embassy closed on Holy Thursday, Good Friday
  • Marketplace