Index plunges on global growth anxiety

MANILA, Philippines - Philippine stocks plunged yesterday, dragged down by global growth worries and absence of market-moving news, analysts said.

The Philippine Stock Exchange index (PSEi) plummeted 2.78 percent or 199.26 points to close at 6,968.89, while the broader all shares index plunged 2.31 percent or 98.05 points to 4,146.24.

“There are a lot of worries internationally while locally, there is no market-moving news,” said Astro del Castillo, managing director of First Grade Finance Inc.

Del Castillo cited the economic slowdown in Europe and the continuing political unrest in Hong Kong as catalyst for the index’s break down yesterday.

“The absence of fresh leads from the economic front amid a region-wide flood of red was much too heavy to lift confidence even as prices move to relative bargain propositions,” added Justino Calaycay, analyst at Accord Capital.

Asian stocks fell to a seven month low on Monday while US stocks likewise stumbled on Friday. The Nasdaq dropped 2.33 percent or 102.10 points while S&P 500 lost 1.15 percent or 22.08 points.

Locally, it was a bloodbath across all counters with holding firms taking the biggest blow losing 3.15 percent or 198.2 points. Industrial and property firms also shed 3 percent and 2.96 percent, respectively.

Market breadth was negative as decliners pummeled advancers, 174 to 26, while 26 stocks did not change hands.