MANILA, Philippines - Philippine stocks slid yesterday as investors fretted about Europe’s debt crisis and worries persisted over a slowdown in China, analysts said.
A batch of downbeat news the past few days about Europe and China undermined investor sentiment that is already fragile from the downgrade of global economic growth forecasts, unleashing a sell-off in markets.
The financial pressure on Spain ratcheted up further Monday, with the interest rate on the country’s key 10-year bond at levels that saw other European nations needing a financial bailout.
The main Philippine Stock Exchange index (PSEi) declined 71.49 points to close at 5,139.40. A total of 962.7 million shares worth P4.09 billion changed hands at yesterday’s trading. Market breadth was negative with decliners outnumbering losers 107 to 43 while 42 issues remained unchanged. Most sectoral indices closed in negative territory, led by financials that dropped by 1.81 percent or 23.64 points to 1,281.23. Property declined by 1.53 percent or 29.14 points to 1,879.51, while holding firms erased 1.30 percent or 56.91 points to 4,312.54.
Industrial decreased by 1.08 percent or 85.22 points to 7,821.92, while services edged lower by 0.74 percent or 13.22 points to 1,770.37.
Mining and oil, however, managed to defy the market’s weakness and closed higher, adding 0.38 percent or 86.91 points to 23,264.19.
The euro sank to a near 12-year low against the yen and also lost ground against the dollar, reflecting continued doubts about the durability of the European common currency.
On Friday, stocks in Italy and Spain plunged over four percent and five percent each after another Spanish region said it might seek financial aid from the government, adding to nagging concerns about Europe’s debt crisis.
A forecast from a Chinese central bank adviser that China’s economy could wane further in the third quarter also deepened concerns about the global slowdown. China’s economic growth slowed to a three-year low of 7.6 percent in the second quarter.