PH shares plummet on surprise US credit rating downgrade

MANILA  -Hit by worries about the health of the global economy after the United States debt score was downgraded by a major ratings agency, the Philippine Stock Exchange index (PSEi) plunged over 100 points on Wednesday.

The benchmark index fell 1.68 percent, or 110.52 points, to 6,483.28 while the broader All Shares index was down 1.48 percent, or 52.09 points, to 3,463.86.

“[F]itch downgraded the US sovereign credit rating by one notch to AA+ (from the highest AAA) as Fitch criticized the US’ ballooning fiscal deficits and an erosion of governance that led to repeated debt limit clashes over the past two decades,” Michael Ricafort, chief economist at the Rizal Commercial Banking Corp., said in a note to investors on Wednesday.

Asian and European markets closed lower while US futures were down sharply, he added.

A total of 787.44 million shares valued at P4.22 billion changed hands while net foreign selling accelerated to P553 million, data from the stock exchange showed.

All PSE subindices slumped, with losers led by mining and oil, down 1.99 percent, and services, down 1.95 percent.

Overall, there were 154 losers against 27 advancers while 47 companies closed unchanged.