26 September 2011
USD/PhP: 43.87 + 0.29 PSEi: 3721.22 - 164.74
USD/JPY: 76.29 PFINC: 841.96 - 35.95
EUR/USD: 1.3464 BDO: 46.25
- 2.25
GBP/USD: 1.5500 BPI: 51.00 - 2.90
PDSTF3M: 3.9727 MBT: 60.10 - 1.95
Prices as of 4:00pm Source: Bloomberg, Reuters
Philippine stocks slide 4.2% as risk aversion intensifies
By: Doris C. Dumlao
Local stocks bled further on Monday on escalating risk aversion arising
from combined US and European woes, dragging the local equities market
almost back to the bear market.
The main-share Philippine Stock Exchange index gave up 164.74 points, or
4.24 percent, to finish at 3,721.22.
The index has now fallen by 18.2 percent, or 828.78 points, since its
record peak of 4,550 in August. If the decline widens further to 20
percent, it means that the market has fallen back to the regime of the
bears and is no longer just undergoing a correction of the bull market.
All counters posted steep losses but the mining/oil counter took the worst
beating, declining by 8.22 percent.
Dealers said the market was not done yet with the massive selling seen last
week. They said bargain hunters weren’t too eager to load up yet as prices
were still falling sharply.
The PSEi, which has been rising in the two previous years, has fallen 11.4
percent behind its end-2010 finish.
Value turnover at the local market amounted to P5.11 billion. There were
about seven decliners for every single advancer.
The PSEi was weighed down most by PLDT, Metrobank, BDO, ICTSI, AGI, EDC, SM
Prime, SMC, Ayala Corp., ALI, Philex, SM Investments, Aboitiz Power, DMCI,
BPI and AEV. Further selling also hit Lepanto A (open only to local
investors) and B (open to both local and foreign) and RCBC.
Among the few stocks that defied the day’s decline was URC.
“Downside risks remain without concrete improvement in the (EU) debt
situation,” said investment bank Credit Agricole CIB. It noted that G-20
countries have been putting pressure on Europe to deliver a credible answer
to the sovereign crisis.
BDO UNIBANK, INC.
Jonathan Ravelas
Chief Market Strategist
(632) 858-3145
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