Index plunges as investors unload stocks

MANILA, Philippines - Selling pressures from overseas bourses and worries over emerging markets snapped the eight-day climb of the bellwether index.

The Philippine Stock Exchange index declined 1.77 percent or 109.89 points to 6,081.61, while the broader all shares index retreated 1.52 percent or 57.02 points to 3,691.75.

“Local stocks snapped an eight-session run as investors remained unconvinced that the pace of global economic recovery is on an even pace,” said Justino Calaycay Jr., an analyst at Accord Capital Equities Corp.

“The wider Asian region retreated for a third consecutive day of losses at the steepest angle in almost half a year,” Calaycay said.

On Friday, Wall Street plunged on economic and political concerns in emerging markets like China, Turkey, Argentina and Ukraine. The Dow Jones Industrial average sank 1.96 percent or 318.24 points to 15,879.11, while the broader Standard & Poor’s 500 index shed 2.09 percent or 38.17 points to 1,790.29.

At home, all counters incurred losses, led by holding firms that plunged 2.41 percent or 135.32 points to 5,473.79.

“The early fall immediately erased 60 percent of the aggregate gains of the preceding eight sessions. While this looks like a huge reversal, it wasn’t outside the realm of the expectations,” Calaycay said.

Decliners dominated gainers, 139 to 26, while 39 stocks did not change. Investor participation weakened, with P6.8 billion worth of shares changing hands from P7.31 billion on Friday.