Philippine stock market slumps on US woes

MANILA, Philippines – The local stock market lost on Tuesday all gains it had eked out this year, dragging down the index back to the 4,100 level, as investors were unnerved by continued decline of stock prices on Wall Street in the wake of the recent US sovereign credit rating downgrade.

The main-share Philippine Stock Exchange index shed 174.21 points or 4 percent to finish at 4,157.03.  It has now fallen below the 4,200 level seen as of end-2010.

The index tumbled by as much as 4.5 percent in intra-day trading but overall losses were trimmed by some late-session bargain-hunting.

“Everyone is racing each other towards the exit. The pessimism is here to stay for the short term as the Dow futures index is still showing further weakness in the next session,” said Astro del Castillo, managing director at local investment management firm First Grade Holdings.

All counters traded in the red, led by the holding firm, property and services counters which slumped by 4.3 percent, 4.6 percent and 4.7 percent, respectively.

The financial, industrial counters and mining counters likewise faltered by over 3 percent.

Turnover was heavy at P8.2 billion.

There were 12 decliners for every single gainer at the market.

Investors sold down index stocks PLDT, AEV, Lepanto “A” (open only to locals) and “B” (open to local and foreign investors), EDC, AGI, ICTSI, Aboitiz Power, Megaworld, DMCI, Metrobank, SM Investments and First Gen heavily.  San Miguel Corp., Zeus Holdings, Semirara, Atlas and Union Bank also fell in heavy trade.