Share prices drop as global markets weaken

MANILA, Philippines - The Philippine Stock Exchange index plunged back into negative territory yesterday as global markets frowned on a slew of bleak US corporate results.

The PSEi finished 33.63 points (0.62 percent) lower at 5,398.69 as selling was broader across the board.

All sub-indices, except the services sector, went down, as market breadth was negative with losers outnumbering winners, 120 to 43. Meanwhile, 42 issues were left unchanged.

Trades were also subdued by a protracted trading week due to a public holiday tomorrow, causing investors to cash in on gains ahead of a long weekend.

US stocks sank Tuesday after some grim corporate reports. Big-name companies like Xerox and 3M reported lower revenue for the third quarter, while chemical maker DuPont said it will have to cut jobs and other expenses to make up for weak demand. UPS, the world’s largest package-delivery company, warned that the pace of global growth remains uneven.

The Dow Jones industrial average plunged 243.36 points to 13,102.53 – its lowest level in nearly seven weeks. The Standard & Poor’s 500 lost 1.4 percent to 1,413.11. The Nasdaq composite index lost 0.9 percent to 2,990.46.

Around Asia, stock markets closed mixed, with losses cushioned by a report suggesting China’s manufacturing slump may be bottoming out.

The results raised the possibility that market losses could “stabilize and perhaps even turn around,” Dariusz Kowalczyk of Credit Agricole CIB in Hong Kong said in a market commentary. “This is an unusually large gain for this time of year, and the level represents a three-month high.”

Japan’s Nikkei 225, after swinging between gains and losses, was flat at 8,954.30. Hong Kong’s Hang Seng added 66.23 points to 21,763.80. South Korea’s Kospi lost 0.5 percent to 1,917.14. Australia’s S&P/ASX 200 fell 0.6 percent to 4,514.10. Benchmarks in Singapore and mainland China rose while those in Thailand and New Zealand fell. Indian markets were closed for a holiday.