Philippine stocks slightly down on jitters over EU summit outcome

MANILA, Philippines—Most local stocks faltered on Thursday as regional markets were jittery on whether this week’s European Union Summit will usher in bold reforms to contain the fiscal crisis.

The main-share Philippine Stock Exchange index shed 2.28 points, or 0.53 percent, to finish at 4,312.89 on mixed trading sentiment.

The index struggled to stay afloat the 4,300 level while investors sold down financial, property, services and mining/oil stocks.

The overall decline was tempered by the gains of the industrial and holding firm counters.

Value turnover amounted to P6.79 billion. There were 71 advancers, which were beaten by 80 decliners, while 53 stocks were unchanged.

The main index was weighed down by PLDT, ALI, Metrobank, ICTSI, Philex, BPI and Aboitiz Power.

The index would have fallen further if not for the gains eked out by BDO, URC, First Gen, Belle, EDC and SMC.

Likewise buoyant for the day were FPH, Nickel Asia, LR and Security Bank.

BDO, the country’s largest lender, is “very close” to meeting its net profit goal of P10.5 billion for 2011.

Regional stock market traded with caution on Thursday on growing skepticism on whether an ongoing EU Summit in Brussels would create a solid solution to the fiscal contagion in the eurozone. In particular, the markets were wary of the friction created by the proposals of France and Germany—the eurozone’s wealthiest member-states—to amend the EU treaty to better promote fiscal discipline.