Philippine stocks slump 4%; down for 3rd straight day



Philippine stocks took a heavy beating yesterday, with the index dropping for the 3rd straight day to close at 4,157.03.

On Tuesday, August 10, the 30-company benchmark index Philippine Stock Exchange index (PSEi) tumbled 4.02% from Monday’s trading, the biggest drop since March 16, 2009 when the index nosedived 4.66% to 1,769.67.

Stocks are already down 9.5% from the peak registered on August 1 this year, and the bourse’s performance is crawling back to negative territory year-to-date with the PSEi dropping 1% from the start of 2011.

Losers outnumbered gainers in yesterday’s trading, with 170 stocks declining in value compared to only 14 stocks posting a gain.

Yesterday’s biggest losers include:

  1. VITARICH CORPORATION (VITA) — P0.43 (-21.8%)
  2. MEGAWORLD CORPORATION – WARRANTS2 (MEGW2)– P0.82 (-15.5%)
  3. WATERFRONT PHILIPPINES, INC.(WPI)– P0.55 (-15.4%)
  4. WELLEX INDUSTRIES, INC. (WIN) — P0.13 (-15.0%)
  5. THE PHILODRILL CORPORATION (OV) — P0.017 (-15.0%)
  6. PHILIPPINE ESTATES CORPORATION (PHES) — P0.12 (-14.9%)
  7. FIRST ABACUS FINANCIAL HOLDINGS CORPORATION (FAF) — P0.63 (-14.9%)
  8. PHILIPPINE TOBACCO FLUE-CURING & REDRYING CORPORATION (TFC) — P14.50 (-14.7%)
  9. MEGAWORLD CORPORATION – WARRANTS1 (MEGW1) — P0.84 (-14.3%)
  10. OMICO CORPORATION – WARRANTS (OMW2) — P0.18 (-14.3%)

Like the rest of the Asian markets, Philippine stocks were pummeled as a continuing result of the U.S. credit rating downgrade by ratings agency S&P and lingering uncertainty in the direction of the U.S. economy. In the European region, loan default issues in Greece, Ireland and Portugal were further exacerbated by a recent spate of public riots in London in the United Kingdom.

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4 thoughts on “Philippine stocks slump 4%; down for 3rd straight day”

  1. on the days leading up to the debt ceiling vote, there was a lot of volatility in foreign markets. but i noticed that the PSEi wasn’t affected much. however, the credit rating downgade brought down the PSEi. any thoughts why the week before the debt ceiling deadline had no effect on the local stock market?

    Reply
    • @etne, I personally think the country’s economic fundamentals are sound, hence the Philippines was not affected that much by problems in the US and the European region. But the recent credit rating downgrade by S&P and continuing loan default concerns in the Eurozone eventually weighed down on Philippine stocks, that’s why the PSE took a beating during the past three days.

      I personally believe Philippine stocks will rebound in the short run but as regards the long term, I’m not sure what will happen as we cannot predict as of now whether a double dip recession in the US is in the offing or if the American economy can sustain a rally that we saw in their trading a few hours ago.

      Reply
      • That makes sense. Other Asian stocks have already rebounded after the Fed announced to keep interest rates low, hopefully we’ll follow suit.

        Reply

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