Philippine stocks fall on China concerns

MANILA, Philippines—Local share prices fell sharply on Monday, along with those of other Asian markets, after Chinese Premier Wen Jiabao aired his concerns over China’s growth.

The benchmark Philippine Stock Exchange Index (PSEi) fell 1.85 percent, or nearly 100 points, to close at 5,263.74 points—the lowest in nearly two weeks. The all-shares index closed 1.05 percent lower to 3,490.50 points.

All sectors posted losses, led by mining and oil shares, which fell 2.81 percent.

This followed a drop in global commodity prices after lackluster news on the United States’ job growth.

Brokerage firm Accord Capital likewise said the release of the Aquino administration’s new executive order outlining rules for the mining industry was a “relative disappointment” for investors.

“There was little change from the status quo, with changes in revenue sharing and taxes requiring legislative action. In the interim, there will be no new mining agreements signed until the required legislation is passed,” analyst Jun Calaycay said.

Some 2.9 billion shares worth P13.16 billion exchanged hands on Monday. Advancers outnumbered decliners 113 to 41, while 39 shares were unchanged.

Bucking the trend was Razon-led casino developer Bloomberry Resorts Corp., which rose 1.91 percent to close at P10.66 a share. The company’s shares were the day’s most actively traded stock.

Also dominating Monday’s trade was Metropolitan Trust and Banking Corp., which fell 3.07 percent to close at P93.05 a share.