Local share prices tumble, track sharp slide on Wall Street

Local stocks again fell below the 3,000 psychological level on Wednesday, tracking Wall Street's sharp drop overnight after a surprising drop in consumer confidence reminded investors of the fragile economic recovery. The Philippine Stock Exchange index tumbled by 1.06 percent or 32 points to finish at 2,981.14, with subindices falling across the board. “We saw a rally in both the local and US markets, which went up to 3,000 and 10,000 index points, respectively, in the last few days. We expect that the local market will play around the 2,900 to 3,000 level in the coming week," analyst Harry Liu of Summit Securities said. In the short-term, he said, local stocks would be experiencing some resistance. "We will see continuous volatility at the close range. In the medium-term, we expect bigger consolidation between now and the days leading to the elections. In the long term, expect an established consolidation at the 2,700 level," he added. The Dow Jones industrial average lost 100 points on Monday. Interest rates also fell in the bond market as investors moved money out of stocks and into the safety of Treasury bills. On the local front, the all-share index lost 12.16 points or 0.64 percent to finish 1,891.07. Losers beat gainers 51 to 35, while 55 stocks were steady. Trading was thin, with only 631.09 billion stocks worth P2.04 billion changing hands. All subindices plummeted, led by property stocks, which closed 2.26 percent or 23.08 points lower at 1,000.23. Mining and oil companies followed with a 1.6-percent or 149.95-point loss to 9,406.29. Financial stocks also went down by 1.37 percent or 8.9 points to 639.44, while services slid by or 1.09 percent or 16.46 points to 1,489.15. Meanwhile, holding firms slipped by 0.46 percent or 7.73 points to 1,682.6, while industrial stocks fell by 0.2 percent or 9.03 points to 4,534.22. Wednesday’s biggest loser was Information Capital Technology Ventures, Inc., which dropped by 9 percent to 80 centavos. The biggest gainer was Philippine Seven Corporation, operator of the 7-Eleven chain of convenience stores, increasing by 17.65 percent to P10. Ayala Corporation, the day’s most traded stock, lost P2.50 to P287.50, while dominant carrier Philippine Long Distance Telephone Co. shed P35 lower to close at P2,565 apiece. — Nikka Corsino/NPA, GMANews.TV