Local stocks weaken on Taal woes
The local stock market underperformed regional peers on Wednesday as investors braced for economic losses from the eruption of Taal Volcano.
The main-share Philippine Stock Exchange index (PSEi) fell by 128.85 points, or 1.65 percent, to close at 7,664.40.
Elsewhere in the region, trading sentiment was mostly cautious.
At the local market, however, veteran stockbroker Joseph Roxas said this had something to do with the ongoing activity of Taal Volcano, which, based on history, had instances where eruption lasted for several months.
He noted that the Philippine Institute of Volcanology and Seismology continued to place a high alert on this volcano and destructive activity might continue in the following days.Socioeconomic Planning Secretary Ernesto Pernia had estimated the economic impact so far at P7.63 billion in Batangas province alone and this has yet to include public and private damage costs.
There are also concerns on the inflationary impact of the phreatic eruption, especially on livestock from Calabarzon (See related story on page B6).
The financial, industrial, holding firm, services and property counters all fell by more than 1 percent.
Only the mining/oil counter ended higher, albeit marginally.
Value turnover amounted to P7 billion. Foreigners were net sellers amounting to P883.99 million.
There were 118 decliners that outnumbered 76 advancers, while 35 stocks were unchanged.
Meralco was among the most battered stocks, losing 4.07 percent, while JG Summit declined by nearly 4 percent.
BPI, Security Bank, GT Capital and Aboitiz Power all fell by more than 3 percent.
PLDT, ICTSI, Metro Pacific and Jollibee declined by over 2 percent.
Ayala Land, Metrobank, SM Investments and Megaworld all slipped by more than 1 percent, while SM Prime, BDO and Ayala Corp. dipped by less than 1 percent.
Globe and URC bucked the day’s downturn, rising by 0.98 percent and 0.4 percent, respectively.
One notable gainer outside the PSEi was Wilcon Depot, which rose by 0.4 percent in relatively heavy trade.
