Philippine stocks shed gains on US jitters

MANILA, Philippines— (UPDATE) Local stocks swung back to negative territory on Thursday as investors fretted about fragile US economic growth as suggested by a news report from the US Federal Reserve.

The main-share Philippine Stock Exchange index fell by 31.1 points, or 0.73 percent, to 4,224.34.

Investors scrambled to lock up profits given a mixed view of the US ecnomy.

All counters traded in the red except for the industrial counter, which was marginally higher. The mining/oil counter also succumbed to profit-taking, declining by 2.3 percent.

Value turnover was thin at P3.56 billion. There was P239 million in net foreign selling for the day, reflecting the risk aversion across global markets.

There were 49 advancers against 82 decliners while 46 stocks were unchanged.

Stocks that led the index lower were SM Investments, PLDT, AGI, DMCI, Metrobank, Lepanto “A” (open only to local investors), BPI, Philex Mining, Jollibee, Ayala Land and SM Prime.  Investors likewise locked up gains from San Miguel Corp., Atlas, SMDC and Semirara.

On the other hand, big infrastructure and utility stocks, such as Metro Pacific Investments, Meralco, Manila Water and Aboitiz Power, bucked the downturn.

“The local market is well en route to posting a fourth weekly loss in the last six weeks. While it has been able to hold above 4,200 psychological support, the scarcity of positive leads amid a cacophony of those to the contrary opens the prospects of a further slide to test a more valid 4,170 support. Trading will remain tepid and advances toward the 4,270 resistance muted,” said Justino Calaycay Jr. of Accord Capital Equities Corp.

Overnight, the Dow Jones Industrial Index was down by 21.87 points, or 0.18 percent, to12,048.94. This was in reaction to reports that the Federal Reserve report, known as the Beige Book, showed that growth in several US regions had faltered for the first time this year. While seven of the Fed’s 12 districts reported steady gains, the economy stalled in the New York, Philadelphia, Atlanta and Chicago region.