Philippine stocks fall over fears of extended eurozone crisis
MANILA, Philippines—Most local stock prices dipped further on Thursday as a disappointing German bond auction escalated concerns that the eurozone debt crisis was far from over.
The main-share Philippine Stock Exchange index shed 33.94 points, or 0.79 percent, to finish at 4,237.65.
Global markets were jittery as Germany’s flopped bond sale reminded investors that the region’s fiscal crisis was now gnawing sharply at the European Union’s economic powerhouse. Sentiment was likewise weakened by disappointing indications of manufacturing output in China and the general caution ahead of the US Thanksgiving holidays.
The property and mining/oil counters were the most battered in the day’s downturn, falling by 2.7 percent and 1.8 percent, respectively. Only the services counter managed to end slightly higher for the day.
There were only 45 advancers against 107 decliners while 44 stocks were unchanged.
Turnover was high at P17.7 billion, but excluding cross-transactions, main board trade amounted to P6.3 billion.
The PSEi’s decline was led by Megaworld, Metrobank, AGI, BPI, SM Investments, ALI, Metro Pacific, BDO, ICTSI and Semirara. Investors also sold down Lepanto A and B and Puregold.
On the other hand, the day’s decline was tempered by the gains eked out by URC and PLDT. Security Bank, IPVG and IP E-Games also traded higher in heavy volume.
Going forward, the market may see a bounce from current levels by yearend, allowing the PSEi to post its third straight year of ascent, said Bank of the Philippine Islands senior vice president Paul Joseph Garcia.
“There will be Santa Claus rally as the rebalancing of the MSCI index was positive for the Philippines, because it increased the weighting with the inclusion of new stocks like ICTSI and URC,” Garcia said.
He noted, however, that risk appetite would still be tempered by developments in the eurozone.
