Local stocks fall as investors leave emerging markets on growing risks

Philippine stocks sank on Monday with the rest of the region as risk aversion heightened after Italian Prime Minister Matteo Renzi announced his resignation after majority of voters thumbed down proposed constitutional changes.

The vote was said to raise doubts on whether Italy would continue to stay in the European Union.

The benchmark Philippine Stock Exchange index (PSEi) fell 1.6 percent, or 110.33 points, to 6,776.41 as jittery investors decided to take money off the table on perceived risky assets like stocks. The broader All-Shares index was down 1.15 percent to 4,118.65.

Trading volume was significantly lower on Monday while foreigners were net sellers. Foreign selling hit P3.4 billion against P3.1 billion in buying, for a net decline of P301 million on Monday, data from the PSE showed.

Among sub-indices, only mining and oil ended positive with a 0.28-percent gain for the day.

Holding companies were the biggest losers, with their sub-index down 2.27 percent. This was followed by property, down 1.85 percent, and industrial, down 1.02 percent.

A total of 742.48 million shares valued at P5.26 billion changed hands. Decliners outnumbered advancers, 124 to 61, while 39 companies closed unchanged.

Ayala Land Inc. was the most actively traded company on Monday as it sank 3.64 percent to P31.80 a share.

Two other top Ayala companies were actively traded. Ayala Corp. was down almost 4 percent to P710 and Bank of the Philippine Islands was down 1.7 percent to P90 a share.

Rounding out the top five most heavily traded companies were Megaworld Corp., down 1.62 percent to P3.64, and PLDT Inc., up 0.79 percent to P1,280 a share.