Local stock prices falter on EU debt woes

MANILA, Philippines—Most local stock prices faltered Wednesday, reversing early session gains, as the European debt saga continued to dampen local investor sentiment.

The main-share Philippine Stock Exchange index shed 34.05 points or 0.79 percent to finish at 4,258.86, still unable to stay afloat above a key barrier at 4,300 despite the rebound elsewhere in the region. All counters were in the red but the mining/oil counter took the biggest hit for the day as it declined by 3.46 percent.

There were only 34 advancers versus 113 decliners while 45 stocks were unchanged.

SM investments, EDC, Megaworld, AGI, San Miguel Corp., Ayala Land, Philex, SM Prime, Metro Pacific Investments and Aboitiz Equity Ventures led the PSEi lower. Lepanto “A” (open only to local investors) and “B” (open to both local and foreign investors)— a market favorite that was recently stricken off the main index — also traded lower alongside Vista Land. Philex Petroleum also succumbed to profit-taking after a phenomenal rise since its listing by way of introduction on Monday.

The market started out strong alongside buoyant regional trading as words of assurance from German Prime Minister Angela Merkel eased concerns over a deteriorating fiscal condition on the continent, said Accord Capital Equities Corp. dealer Justino Calaycay Jr.

He noted that the PSEi pushed up nearly 14 points twice within the first hour but failed to sustain both rallies, eventually retreating into the red a third of the way. By the end of trading, the main index had slipped past the 4,270 support line.

“Signals from Europe and the US remain mixed, befuddling investors on which way to go on their trades. Although Germany has put on kind words for the crisis, and harsh ones for doomsayers, the reality of the present conditions have kept the forward outlook clouded. At the very least, markets has remained cautious, with heightened sensitivity to negative news,” Calaycay said.

He noted that market breadth continued to be widely negative, highlighted by the fact that14 of the 20 top value active issues posted losses.

Overnight, the Dow Jones Industrial Index was up by 44.73 points or 0.4 percent to 11,105.85.

However, the Dow Jones futures index was down by 125 points as of noon-time, suggesting a still bleak investor sentiment.