PSEi mimics US marts, falls on European worries

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The benchmark stock index again tracked declines in US markets, this time on worries about the European economy as Germany recorded its largest drop in exports since January 2009.

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The Philippine Stock Exchange index (PSEi) closed with a 0.48-percent decline or 34.54 points to 7,167.35. The broader All Shares index also dropped 0.49 percent or 20.93 points to 4,244.29.

The US markets were down overnight, with the Dow Jones taking a 334.97-point blow from the sour global sentiment. The S&P 500 erased 40.68 points, while the Nasdaq lost 90.26 points.

International reports stated that Germany’s exports dropped by 5.8 percent — sharper than the forecasted 4 percent by economists — which in turn escalated worries on the European economy.

The 5.8-percent export decline in Germany was the lowest since January 2009 when the global economy was in turmoil after the collapse of US-based investment bank Lehman Brothers.

The negative sentiment in the global scene pulled down European, US and Asian stocks alike, including the Philippines.

Jason Escartin of F. Yap Securities Inc. said that the market continued to follow Wall Street’s leads due to the lack of catalysts locally.

“The market took its cue from Wall Street’s sharp overnight slump on concerns over Europe’s economy,” Escartin said. However, “declines were limited as fund managers awash with cash seize on this dip to position,” he added.

All the sectoral indices were down, with the mining and oil counter leading the decrease on lower oil and metal prices in the international markets.

Mining and oil went down 1.47 percent or 244.56 points to 16,410.76, while financials dropped 0.50 percent or 8.41 points to 1,689.63. Industrials fell by 0.69 percent or 79.11 points to 11,472.22; holding firms slid 0.44 percent or 28.10 points to 6,316.28; services closed down 0.42 percent or 8.99 points at 2,111.81; and property slipped 0.12 percent or 3.34 points to 2,791.68.

The most active companies mostly incurred losses, except GT Capital Holdings Inc., which ended flat, while Ayala Land Inc. and Bloomberry Resorts Corp. posted modest gains.

Abra Mining and Industrial Corp. led all advancers with a 10.45 percent gain, while Forum Pacific Inc. was the day’s biggest loser, shedding 20.51 percent.

17.231 billion shares with a total value of P7.245 billion changed hands Friday. Losers outnumbered gainers, 116 to 63, while 43 shares were unchanged.

On Thursday, the PSEi added 0.23 percent or 16.21 points to close at 7,201.89, while the All Shares index also rose by 0.22 percent or 9.49 points to 4,265.22.

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