Philippine stocks dip on Wall Street decline

PSE index as of July 17, 2012 03:46:00 PM

MANILA, Philippines—Most local stocks faltered on Tuesday, tracking the overnight decline on Wall Street rather than the upswing across the region.

The main-share Philippine Stock Exchange index shed 12.87 points, or 0.24 percent, to finish at 5,285.12 in mixed and thin trading. Intraday losses were tempered as regional markets were buoyed by hopes for economic stimulus in China.

At the local market, many investors took a breather as the main index again neared record highs. The PSEi last established a record finish at 5,369.98 on July 5 while an intraday peak was set at 5,403.16 on July 4.

The local index was weighed down by holding firms, services and mining/oil counters.  On the other hand, meager gains eked out by the financial, industrial and property counters trimmed the day’s losses.

Value turnover was still thin at P4.99 billion. There were two decliners for every single gainer.

Ayala Corp., PLDT, BPI, AGI and DMCI took the worst beating for the day.

Security Bank, GT Capital, Puregold and Lepanto also lost ground.

On the other hand, Metrobank, BDO, SM Investments, Semirara, Globe and AP gained on Tuesday. Bloomberry and FPH were likewise among the notable gainers.

“Weak global growth will remain to be a concern for investors,” Metrobank said in its daily research. It noted that US stocks had likewise tumbled the night before after the International Monetary fund slashed its global growth forecast while US June retail sales unexpectedly dropped.

Southeast Asian nations, including the Philippines, however, were spared from the IMF’s downgrade. Stock markets in the region were mostly higher on Tuesday as hopes for economic stimulus especially in China made up for the IMF’s weaker global growth outlook.