Philippine composite index continues free fall despite Wall Street recovery

Local share prices continued their free fall on Tuesday, succumbing to profit-taking despite an overnight recovery on Wall Street and other Asian stock markets. The Philippine Stock Exchange index (PSEi) tumbled by 1.76 percent or 56.41 points to 3,147.5, with all subindices losing at least a percent each. “This is a continuation of profit-taking. We are not following Asian markets, not even the US market. We expect it would still be very shaky for the rest of the week," analyst Jasper Jimenez of Banco de Oro Securities said in an interview. Analysts earlier said investors were playing it safe given election jitters, but the composite index would likely recover in the middle of the week. The Dow Jones industrial average rose by 73.39 points overnight, while the Standard & Poor’s 500 index added 5.39 points. The NASDAQ composite, on the other hand, shed 1.15 points. Asian markets also gained. On the local front, however, the broader all-share index closed 24.79 points or 1.24 percent lower at 1,967.08, with 72 losers, 17 gainers, and 76 stocks steady. Volume turnover was brisk, with 1.7 billion stocks worth P8.69 billion changing hands. Jimenez traced the high volume to a special block sale of Banco de Oro Unibank stocks. Trading of Banco de Oro shares, which went down by P2.50 to P41.50 each, represented almost two-thirds of the market. Of the 20 most active stocks, only Metrobank advanced, closing 50 centavos higher at P50.50. Dominant carrier Philippine Long Distance Telephone Co. lost P60 to finish at P2,440. SM Prime Holdings, Inc., Manila Water Co., and Filinvest Land, Inc., were steady at P9.70, P15.25, and 95 centavos, respectively. Service stocks lost 2.23 percent or 33 points to 1,449.82, while holding firms slid by 1.77 percent or 35.3 points to 1,954.7. Property stocks also closed 1.53 percent or 17.87 points lower at 1,151.25, while the industrial index tumbled by 1.51 percent or 73.11 points to 4,776.88. Mining and oil stocks likewise lost 1.33 percent or 123.61 points to 9,152.76, while the financial index fell by a percent or 6.93 points to 684.08. — Nikka A. Corsino/NPA, GMANews.TV