Weak overseas markets drag down local share prices
MANILA, Philippines - The stock market tumbled anew yesterday, falling below the 3,000 psychological level following Wall Street’s sharp drop overnight as a result of a surprising drop in US consumer confidence.
The Philippine Stock Exchange index tumbled by 1.06 percent or 32 points to finish at 2,981.14.
The Dow Jones industrial average lost 100 points on Monday. Interest rates also fell in the bond market as investors moved money out of stocks and into the safety of Treasury bills.
On the local front, the all-share index lost 12.16 points or 0.64 percent to finish 1,891.07. Losers beat gainers 51 to 35, while 55 stocks were steady. Trading was thin, with only 620.37 million stocks worth P1.95 billion changing hands.
All subindices plummeted, led by property stocks, which closed 2.26 percent or 23.08 points lower at 1,000.23. Mining and oil companies followed with a 1.6-percent or 149.95-point loss to 9,406.29.
Financial stocks also went down by 1.37 percent or 8.9 points to 639.44, while services slid by or 1.09 percent or 16.46 points to 1,489.15.
Meanwhile, holding firms slipped by 0.46 percent or 7.73 points to 1,682.6, while industrial stocks fell by 0.2 percent or 9.03 points to 4,534.22.
Yesterday’s biggest loser was Information Capital Technology Ventures Inc., which dropped by nine percent to 80 centavos.
Ayala Corp., the day’s most traded stock, lost P2.50 to P287.50, while dominant carrier Philippine Long Distance Telephone Co. shed P35 to close at P2,565.
Meanwhile, World markets slid Tuesday after an unexpectedly big fall in US consumer confidence in February stoked renewed concerns about the pace of the US economic recovery.
In Europe, the FTSE 100 index of leading British shares was down 34.78 points, or 0.7 percent, at 5,317.29 while Germany’s DAX fell 86.94 points, or 1.5 percent, at 5,601.50. The CAC-40 in France was 49.47 points, or 1.3 percent, lower at 3,707.41.
Sentiment in the markets, particularly in Europe, had been fairly brittle before the consumer data. — AP
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