Index plunges on concerns about US economy
Share prices closed two percent lower yesterday after a sell-off on Wall Street sparked by concerns about the
The Philippine central bank’s decision Thursday to cut key interest rates by another 25 basis points failed to stir excitement, as the move was widely expected, they added.
The composite index fell 73.26 points to 3,598.96, just off the day’s low of 3,595.13. It was the index’s weakest level since Oct. 1 when it settled at 3,597.92.
The broader all-share index lost 37.72 points to 2,210.30.
Decliners overwhelmed advancers 101 to 17, while 41 stocks were steady.
Volume amounted to 3.8 billion shares worth P5.3 billion.
The market spent the entire session in negative territory with the selling pressure intensifying in the last hour of trading.
Even property developers were not spared.
“Interest rate-sensitive property stocks usually rise after a rate cut, but investors opted to cash in on recent gains ahead of the weekend,” said Ron Rodrigo of DBP-Daiwa Securities.
“Domestic fundamentals are strong and the property sector itself is experiencing an unprecedented boom. There is no other reason that I can see except
Megaworld Corp., the country’s second-largest home builder, fell 20 centavos to P3.95.
Metropolitan Bank and Trust Co., the country’s largest bank by assets, slumped P2.50 to P53.50.
Philippine Long Distance Telephone Co., the country’s biggest company by market value, retreated P35 to P3,015, snapping a three-day rise.
Geothermal power producer PNOC Energy Development Corp. bucked the trend. The stock rose 10 centavos to P7.20 on its first day as a constituent of the 30-company main index.
Food and beverage group San Miguel Corp.’s A-shares, limited to local investors, fell P1.50 to P51.50. Its B-shares, open to foreigners, slipped P2.50 to P51.50. — AFP
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