Philippine stocks tumble on new concerns over eurozone debt

MANILA, Philippines—Local stocks tumbled on Monday as fresh concerns over the eurozone debt spooked regional markets after a region in Spain sought financial aid from Madrid.

The main-share Philippine Stock Exchange index shed 71.49 points, or 1.37 percent, to close at 5,139.40.

“We believe today’s sell-off was primarily driven by some profit-taking by foreign funds as they lock in some of their hefty gains for the year and shift their attention to the rising macro-concerns in the more developed markets,” said COL Financial president Conrado Bate.

“The break of the 5,150 (support level) puts my view at play,” said Banco de Oro Unibank strategist Jonathan Ravelas. “[I’m] looking toward a test of the 5,000 levels.”

The market was weighed down by the financial, industrial, holding firm and property counters, which all lost more than 1 percent.

Only the mining counter managed to eke out small gains for the day, aided by the 0.93 percent share advance by Philex Mining.

This developed as Philex chairman Manuel V. Pangilinan said the company would be able to proceed with at least the Boyongan portion of its Silangan mining project in the aftermath of the issuance of a new executive order on mining. The portion comprising the Boyongan deposits is covered by a mineral production sharing agreement (MPSA 149-99-XIII).

Turnover was thin at P4.09 billion.

There were 107 decliners against only 43 gainers while 42 stocks were unchanged.

Investors sold down index stocks ALI (-2.69 percent), AC (-4.56 percent), SMIC (-0.42 percent), PLDT (-1 percent), Metrobank (-2.62 percent), URC (-2.86 percent), BDO (-3.6 percent), Megaworld (-1.4 percent), AGI (-1.38 percent), RLC (-1.84 percent), AP (-1 percent), DMCI (-2.76 percent) and EDC (-1.79 percent).

Puregold and Bloomberry were also hit by profit-taking, declining by 2.07 percent and 3.04 percent, respectively.

On the other hand, joining Philex among the few gainers on the list of actively traded stocks were First Gen (+0.33 percent) and Abacus (+7.53 percent).

Abacus recently declared a 10 percent cash dividend equivalent to a 10-centavo entitlement per share as well as a 10 percent property dividend in the form of common shares equivalent to 10 centavos per share held less the applicable taxes, if any.

Meanwhile, stocks around the world plunged on news that the Spanish region of Valencia was asking for financial assistance from Madrid.