Deutsche Bank worries drag down PH stocks

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PHILIPPINE stocks ended lower on Friday in line with other markets around the globe as jitters over the health of Germany’s largest lender Deutsche Bank AG fueled growing concern for the health of the global financial sector.

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The benchmark Philippine Stock Exchange index (PSEi) dropped 1.10 percent or 85.13 points to 7,629.73, while the broader All Shares index fell 0.88 percent or 40.15 points to 4,533.24.

“Philippine equities echoed their US market counterparts as stocks fell with banks retreating amid growing concern that Deutsche Bank AG’s woes will spread to the global financial sector,” said Luis Limlingan, managing director of Regina Capital Development Corp.

“Health-care shares also sank on the speculation that tighter regulations will crimp profits. Initial jobless claims rose by 3,000 to 254,000 during the week ending September 24 from a figure for the prior week that was revised down slightly,” he added.

Reports said most of the US and regional markets saw sharp declines on Friday as investors turned to “safe haven” assets such as the Japanese yen, gold and sovereign bonds.

Concerns about Deutsche Bank’s financial health arose after it was reported earlier this month that the US Justice Department wants the lender to pay a potential $14 billion fine for allegedly packaging up “toxic mortgages” between 2005 and 2007.

On Friday, all sub-indices traded lower led by the services index.

Among the actively traded stocks, BDO Unibank Inc. and SM Investments Corp. were the only gainers while the rest declined, including Universal Robina Corp., Metropolitan Bank and Trust Company, Ayala Corp., SM Prime Holdings Inc., Ayala Land Inc., JG Summit Holdings Inc., Aboitiz Equity Ventures Inc., and GT Capital Holdings Inc.

Some 1 billion shares worth P13.58 billion were traded on Friday. Decliners outnumbered advancers 119 to 65, while 45 shares were unchanged.

On Thursday, the benchmark index was up 127.90 points or 1.69 percent at 7,714.86 while the wider All Shares index added 55.98 points or 1.24 percent to 4,573.39.

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