PH stocks slump on China news

MANILA, Philippines–Philippine stocks fell Wednesday on a fresh wave of profit-taking and as regional stocks took a hit on slowing growth in China, a major trading partner.

The benchmark Philippine Stock Exchange index (PSEi) sank 1.86 percent, or 150.03 points, to 7,906.46. The broader all-shares index was also down 1.85 percent to 4,520.89.

Losses were across the board, with about 161 companies closing in the red against 31 gainers. Another 37 companies closed unchanged.

Sub-indices all ended negative, with mining and oil leading the way with its 4.13-percent decline while property sank 2.6 percent.

“It’s not panic selling. It’s really continued profit-taking. With the recent run-up, some investors felt we went up too fast too soon,” said Astro del Castillo, First Grade Finance Inc. managing director. He was referring to an eight-day rally that ended this month and saw the PSEi breach the 8,100 level.

“We were also pulled down by the poor sentiment in the region, with concerns on China slowing down,” he added. Del Castillo said the market could consolidate between the 7,800 to 7,900 level.

Continued dips could also lure bargain hunters ahead of the release of first-quarter earnings results, he said.

Universal Robina Corp. on Wednesday took the brunt of the selling as it led actively traded stocks with a decline of 2.28 percent to P214 a share. It was followed by GT Capital Holdings, down 1.75 percent to P1,346; Megaworld Corp., down 3.09 percent to P5.33; Ayala Land Inc., down 2.83 percent to P39.45, and Metrobank, down 1.82 percent to P97.20 per share.–Miguel R. Camus