Philippine stocks dip on EU woes

MANILA, Philippines—The local stocks index ended slightly lower on Thursday as lingering European debt woes and weak economic indicators out of Asia tempered risk-taking.

The main-share Philippine Stock Exchange index shed 3.26 points, or 0.08 percent, to finish at 4,282.67.

Fears that the EU debt crisis is worsening also spooked Wall Street while most Asian stock markets fell in bear territory. Overnight, the Dow Jones Industrial Index fell by 131.46 points, or 1.1 percent, to 11,823.48.

At the local bourse, the mining/oil counter took the brunt of the selling, falling by 4 percent due to profit-taking on Lepanto A (open only to local investors) and B (open to all) and Philex. The industrial and property counters likewise faltered.

On the other hand, holding firms and services posted modest gains.

There were 98 decliners, which overwhelmed 62 gainers, while 36 stocks were unchanged.

The main index was weighed down by ALI, Philex, Metrobank, AGI, Cebu Air, BPI, EDC and DMCI.  A non-index company PRC was also sold down in heavy trade.

On the other hand, PLDT, BDO, SMC, Ayala Corp., SM Investments and Meralco gained. APC likewise traded higher.

“Global sentiment was dented again by lingering concerns over the eurozone debt problems and the higher auction yield at the five-year Italian bond. Asia is not bringing good news either. Japan’s Tankan disappointed, suggesting sluggish manufacturing activity especially in electrical machineries,” said investment bank Credit Agricole CIB.

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