Philippine stocks slide on negative EU credit watch

MANILA, Philippines—Most local stocks dipped on Tuesday as a negative credit watch slapped by global credit watchdog Standard & Poor’s on 15 European states reminded investors that the fiscal contagion is far from over.

The main-share Philippine Stock Exchange index shed 8.95 points, or 0.21 percent, to finish at 4,282.77.

All counters fell except for services, which was boosted by steady trading on telecom giants PLDT and Globe.

The mining/oil index was the most battered counter for the day, slipping by 3 percent, as investors pocketed gains from Lepanto A (only for local investors) and B (for all investors).  Lepanto A fell by 6.7 percent to P1.65 per share while Lepanto B was down by 4.2 percent to P1.82 per share.

Investors sold on news about Gold Fields’ upbeat gold exploration target (52 million ounce of gold equivalent) for Lepanto’s Far Southeast mining project in central Cordillera.

Apart from telecom stocks, SMC and URC also bucked the day’s downturn.

Value turnover for the day amounted to P5.28 billion. There were only 50 advancers, which were overwhelmed by 102 decliners, while 48 stocks were unchanged.

“Risk assets stumbled following news that S&P has placed 15 eurozone countries on negative watch,” said investment bank Credit Agricole CIB.

Among the countries placed on S&P’s negative credit watch were the EU’s strongest members Germany and France.  The Netherlands, Finland, Italy, Luxembourg, Spain, Ireland and Belgium were likewise placed on negative watch.