• Stock market falls, tracks global sell-off


    The stock market dropped by more than 1 percent on Friday, tracking a global sell-off spurred by disappointment over a eurozone stimulus and concerns over an upcoming US Federal Reserve policy meeting.

    The Philippine Stock Exchange (PSEi) declined by 1.03 percent or 72.17 points to close at 6,921.93, while the broader All Shares index also decreased by 0.86 percent or 34.48 points to end at 3,993.23.

    “The market declined today on disappointing news from both Europe and in the US. Most investors stayed on the sidelines as the US rate hike is nearing, adding fears to global markets. The stimulus proposal [in Europe]likewise failed to boost investor sentiment,” said Lexter Azurin, equity analyst at Unicapital Securities Inc.

    Investors were disappointed after a smaller-than-expected rate cut by the European Central Bank, viewed as not enough to spur eurozone growth.

    News of a jump in domestic inflation last month was pushed aside, Azurin said, “since investors were focused more on global uncertainties.”

    “I don’t think [the jump in inflation]is a concern for now since it’s still at manageable levels,” he added.

    November inflation accelerated to 1.1 percent, up sharply from 0.4 percent a month earlier. It remains below the central bank’s 2 percent to 4 percent target.

    Moving forward, Azurin said more volatility should be expected as the US central bank is likely to announce an interest rate hike after it meets on December 15 to 16.

    All sub-indices declined at the PSE, led by property and services that fell by 2.18 percent and 1.19 percent, respectively.

    Losers outnumbered gainers 112 to 50 while 38 issues did not move. Total shares traded reached 1.707 billion, amounting to P4.958 billion.


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