Stocks drop as global markets weaken

MANILA, Philippines - Declines in stock markets abroad and the start of another long weekend pulled back local share prices yesterday.

The Philippine Stock Exchange index shed 0.18 percent or 11.83 points to end this month’s trading at 6,585.38, snapping a two-day climb. The broader All Shares index fell a mere 0.01 percent or 0.31 point to 3,977.12.

“Local investors took their cue from this weakness in overseas prices, reversing the generally positive feel of Wednesday’s trades,” said Justino Calaycay Jr., analyst at Accord Capital Equities Corp.

“The looming extended weekend may have served an additional de-motivation to hold positions,” he added.

Markets abroad were in the red on the statement that the US Federal Reserve is still looking at more signals of improving US economy before it pulls out its stimulus program.

The Dow Jones industrial average shed 0.4 percent or 61.59 points to close at 15,618.76 while the broader Standard & Poor’s 500 index dropped 0.5 percent or 8.64 points from a record high to end at 1,763.31.

Asian markets also pulled back, with Japan’s Nikkei 225 losing 1.2 percent or 174.41 points to 14,327.94 while Hong Kong’s Hang Seng index retreated 0.42 percent or 97.65 points to 23,206.37.

In the local scene, the counters were mixed, with financial firms dropping 0.69 percent or 11.18 points to end at 1,618.26 to lead the losers. The service sector rose 0.37 percent or 7.42 points to 2,004.20.