19 April 2011
USD/PhP: 43.33 + 0.075 PSEi: 4245.21 - 23.98
USD/JPY: 82.53 PFINC: 938.61 - 9.32
EUR/USD: 1.4255 BDO: 53.00 - 0.15
GBP/USD: 1.6263 BPI: 57.40 - 1.35
PDSTF3M: 1.0481 MBT: 68.40 - 0.40
Prices as of 4:00pm Source: Bloomberg, Reuters
PH stock prices stumble amid US credit rating jitters
MANILA, Philippines—The bloodbath on Wall Street amid threats of the U.S. losing its triple-A sovereign credit rating halted local stocks' four-day run-up on Tuesday.
The main-share Philippine Stock Exchange index lost 23.98 points or 0.56 percent to finish at 4,245.21. The downturn was tempered by hefty gains posted by the mining/oil counter which surged by 2.86 percent.
"The market was relatively resilient, ending down in sympathy but not in magnitude to the Dow. Foreign funds still continue to pour into emerging markets given S&P's negative outlook on the US," said PNB Securities deputy chief Manuel Lisbona.
Mining stocks led by Philex were favored by investors' turning to commodities like gold as a safe haven following the outlook downgrade by S&P on the US sovereign credit rating. On the other hand, holding firms led by AGI were seen benefiting from a diversified portfolio.
Semirara, Lepanto and Nickel Asia were among the mining stocks that gained.
PLDT, Metrobank, ICTSI, EDC, Megaworld, BPI, Ayala Land, First Gen, Banco de Oro, Aboitiz Power and Metro Pacific Investments traded in the red. There was also further profit-taking on gaming stock LR as partner Belle announced that the opening of their casino venture had been pushed back to the second quarter of 2012.
Following S&P's "negative" outlook on the US sovereign's AAA credit rating, the closely watched Dow Jones industrial average incurred its sharpest loss since mid-March, falling by 140.24 points or 1.1 percent, to close at 12,201.59 overnight. The broader S&P 500 and tech-heavy Nasdaq likewise fell by 1.1 percent.
BDO UNIBANK, INC.
Jonathan Ravelas
Chief Market Strategist
(632) 858-3145
Rhys Cruz
Junior Researcher
(632) 858-3001
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