Global jitters upset PH stock market

0

Fresh from a brief rebound, Philippine shares finished the week in negative territory as global developments, particularly the sudden prospect of Portugal slipping into default, rattled world markets.

Advertisements

Astro del Castillo, First Grade Finance Inc. managing director, said the market was possibly down because of overseas jitters, which triggered continuous profit-taking in Friday’s session.

The Philippine Stock Exchange index (PSEi) closed the week down 36.12 points from Thursday’s close, losing 0.52 percent to 6,901.09, while the wider all shares shed 20.10 points, or 0.48 percent to close at 4,136.50.

“The Philippine market declined today, taking cues from off-shore markets and sharing continuous concerns over a possible default in Portugal as the country showed financial distress,” Lexter Azurin, research analyst at Unicapital Securities Inc., explained.

According to DA Market Securities analyst Gab Aguila, European and US markets fell after concerns of a default in Portugal resulted in an equities selloff as investors sought safe haven assets.

The PSEi was down as much as 57 points partway through Friday’s session, bottoming out at 6880 before investors snapped up shares in the closing minutes and trimmed the index’s losses for the day.

Among the sectoral indices, holding firms had the largest decline, falling by 47.45 points, or 0.76 percent to 6,212.92.

Aguila noted that the sector was dragged down by news that businessman Andrew Tan has sold a large number of his shares in Alliance Global Group Inc. (AGI), a major player in the holding firms sector, via a private placement.
AGI shares plummeted 3.69 percent to P28.70.

All the remaining sectors saw declines as well on Friday. The property sector was the next biggest loser after holding firms, shedding 15.17 points, or 0.57 percent to 2,653.86, followed by financials, which were down by 9.15 points, or 0.55 percent at 1,656.66.

Industrials declined by 32.19 points, or 0.31 percent to close at 10,437.12, while mining and oil, dropped 48.01 points, or 0.29 percent to 16,524.16. Services ended mostly flat at 2,076.17, losing just 5.43 points, or 0.26 percent.

Trade volume was heavy, with 44.8 billion shares valued at P15.4 billion changing hands. Decliners outnumbered advancers, 109 to 67, with 51 unchanged issues.

Some of the most actively traded stocks were blue chip firms Philippine Long Distance Telephone Co., down 0.27 percent to P3,000; Metropolitan Bank and Trust Co., down 0.67 percent to P89.50; Ayala Land Inc., up 0.16 percent to P31.40; and SM Investments Corp., down 1.54 percent to P799.

Friday’s session failed to keep up the momentum from Thursday, when Philippine shares shook off two days of moderate declines on news of a slight recovery seen in Wall Street.
The PSEi closed Thursday up 33.42 points, or 0.48 percent to 6,937.21, while the wider all shares added 17.88 points, or 0.43 percent to 4,156.60.

Share.
loading...
Loading...

Please follow our commenting guidelines.

Comments are closed.