Phl stocks continue to defy Asian downtrend

MANILA, Philippines - Philippine share prices continued to advance yesterday, defying the general downtrend in most Asian stocks as bargain hunters continued to look for bargain stocks.

Most Asian stocks were down yesterday, weighed down by fears over the so-called US “fiscal cliff” that’s seen as a big threat to the economic recovery. Chinese stocks edged higher as investors awaited economic data they hoped would show a pickup in growth.

At the Philippine Stock Exchange (PSE),  the  main composite index  rose 22.08 points to settle at 5,468.79 while the All Shares index climed 14.14 points to 3,589.42.

Total volume turnover reached 8.19 billion worth P6.65 billion. Gainers were 79 and losers were also 79 while 56 issues remained unchanged.

Across Asia, Japan’s Nikkei 225 index fell 79.55 points to 8,757.60 and Hong Kong’s Hang Seng plunged 182.53 points to 21,384.40. South Korea’s Kospi retreated 0.5 percent to 1,905.33.

Australia’s S&P ASX 200 dropped 0.5 percent to 4,461.30 after the central bank released a downbeat assessment of the country’s economy.

The slump in major Asian stock markets mirrored the trend in markets worldwide as investors have refocused on challenges to the world economy following President Barack Obama’s re-election. Many worry that gridlock in Washington will prevent the president and Congress from reaching a deal before the package of tax increases and government spending cuts kicks in on Jan. 1.

Investors also have renewed fears about Europe’s lingering debt crisis. European Central Bank President Mario Draghi warned that the economy of the 17 nation grouping that uses the euro remains weak and will struggle to grow even with “visibly improved” confidence among the currency union’s financial markets.

Asian stocks are “going to be very much driven by the US and Europe,” said Peter Esho, chief market analyst at City Index Asia Pacific in Sydney. But “I think things will change in the first quarter of 2013 with a coordinated Chinese response” to the country’s painful slowdown, he said.