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MANILA, Philippines—The local stock index dipped on thin trade on Thursday as a recent European Union leaders’ meeting failed to ease market jitters on the fiscal contagion.
The main-share Philippine Stock Exchange index shed 24.31 points, or 0.49 percent, to close at 4,904.22, ending in the red for the second consecutive session. Indications of weak factory output in China did not help, although analysts said this likewise suggested that economic pump-priming may be accelerated.
The market was weighed down most by the financial and mining/oil indices, which dipped by 1.44 percent and 1.07 percent, respectively. The services and industrial counters likewise declined.
Turnover amounted to P3.96 billion or thinner than the trades in recent days. There were 68 advancers against 85 decliners while 41 stocks were unchanged.
The index stocks that dragged down the PSEi were PLDT, URC, Semirara, Metrobank, AGI, BPI, Philex, EDC, JG Summit, ICTSI and Megaworld.
Semirara dropped by 7.53 percent in reaction to the slump in coal prices.
On the other hand, the day’s index losses were tempered by the gains of DMCI, AC, SMIC, RLC, MPI, ALI and First Gen. PXP likewise traded higher.
AC and ALI rose by 1.23 percent and 1.49 percent respectively after the latter announced plans to go into the retailing business.
The day’s best performer was PXP, whose share price surged by 9.23 percent.
Investment bank Credit Agricole CIB said concerns that the EU leaders’ summit would not result in a breakthrough were subsequently confirmed. It noted that the post-EU summit indicated absence of compromises while overall, the European leaders reiterated that they want Greece to stay in the eurozone.
“We expect markets to be under pressure in the very short term as the European crisis is the biggest threat to market and economic stability,” the investment bank said.