MANILA, Philippines—Local stock prices succumbed to a prolonged downturn on Wednesday while Europe’s debt woes and mixed U.S. economic trends heightened global risk aversion, wiping out all the gains the local exchange index made this year.
The main-share Philippine Stock Exchange fell by 36.1 points or 0.85 percent to 4,190.98, falling for a fifth straight session and breaking down a key support level at 4,200, which was the level at the end of 2010.
The day’s decline was led by the financial and property counters, which fell by 1.5 percent and 1.3 percent, respectively, due to fears over rising inflation. Only the mining/oil sub-index managed to stay afloat for the day.
Value turnover amounted to P4.76 billion.
There were only 50 advancers versus 73 decliners while 36 stocks were unchanged.
Dealers said the breakdown of the 4,200 support level triggered further selldown.
AGI, Metrobank, Aboitiz Power, San Miguel Corp. and EDC fell in heavy trade, falling by 5 percent, 2.5 percent, 1.9 percent, 1.19 percent and 2.7 percent, respectively.
Gains by Lepanto A, PLDT, URC, Meralco, First Gen, Megaworld and Ayala Corp. tempered overall index decline.
Other stocks that traded in the red in heavy volume were Vista Land, ICTSI, Metro Pacific Investments, Philex Mining, Banco de Oro and BPI.
Overnight, the Dow Jones Industrial Index fell by 25.05 points or 0.2 percent. Risk appetite was low across global equity markets on concerns over debt-strapped Greece, after the main opposition blocked a program to pare down debt. Moody’s had also warned that a debt restructuring by Greece would be considered a default.
Eagle Equities Inc. president Joseph Roxas said the over 4-percent plunge in China’s stock markets on Tuesday also weighed down investor sentiment. At the same time, he said, the domestic economy was softening versus last year’s extraordinary expansion.
“The residual effect of last year’s election spending is now abating so the economy is slowing down and people can really feel the effect of high oil prices,” Roxas said.