Ghost month spooks stock prices

MANILA, Philippines – For the second straight day, the market ended in negative territory yesterday, the official start of the ghost month.

Blue chip companies led by index heavy weight Philippine Long Distance Telephone Co. (PLDT) – which reported a 33 percent decline in first half income to P12.5 billion – contributed to the market slump.

The benchmark Philippine Stock Exchange index plunged 149.34 points, or 1.85 percent, to finish at 7,888.44, while the broader All Shares index declined 70.04 points or 1.47 percent to end at 4,691.13.

Likewise, all counters closed in negative territory with the services, holding firms and the mining and oil sectors among the biggest decliners.

Total volume turnover reached P13.55 billion as decliners edged out advancers 163 to 37 while 41 stocks were left unchanged.

Foreign buying was at P6.73 billion, while foreign selling hit P4.20 billion.

Analysts said that part of the reason for the market slump was the PLDT selloff and the generally pessimistic mood in the region on disappointment over the much-hyped Japanese stimulus plan.

The plan will comprise of just low interest loans from the government and not much new or direct spending that could significantly lift the Japanese economy.

PLDT booked losses for its investment in Germany-based Rocket Internet SE and its earnings from its mobile phone, data and landline businesses were little changed.