Local shares slump after foreign markets crash

Philippine share prices slumped on Friday after international markets crashed overnight due to thinning investor confidence resulting from Europe’s financial troubles. The Philippine Stock Exchange index (PSEi) lost 34.44 points or 1.07 percent, finishing below the 3,200 level at 3,179.36. Friday's sell-off saw 7.51 billion stocks worth P3.32 billion changing hands. Losers outpaced gainers, 97 to 20, with 52 issues unchanged. "The same footprints of the overseas markets continue to hit us. It's showing investor jitters on the possible economic slowdown, which prompt investors to reach for safer instruments," Astro Del Castillo of First Grade Holdings told GMANews.TV. On the brighter side, Del Castillo welcomed the US Senate's passage of the Wall Street reform bill last night, saying this could bring positive news to the market in the next days. Wall Street posted record lows last night, while other international markets also slumped. The Dow Jones industrial average plunged 376.36 points — its biggest one-day point loss in 15 months, and its 3.6-percent loss the worst since March 2009. Meanwhile, the NASDAQ composite fell 94.36 points, its worst in 16 months, and its 4.1-percent fall the biggest since February 2009. The Standard & Poor’s 500 index likewise fell by 43.46 points, a record low since since January 2009, and its 3.9-percent loss posting a 13-month low. On the local front, the broader all-share index slid by 0.82 percent or 16.57 points to finish at 2014.88. Subindices declined across the board, led by property stocks which lost 2.38 percent or 27.76 points to end at 1139.29. Holding firms finished 1.63 percent or 34.2 points lower at 2070.18, while financial stocks lost 1.37 percent or 9.61 points to 693.83. Industrial stocks also went down by 1.18 percent or 58.51 points to close at 4899.53. Mining and oil stocks shed 0.53 percent or 44.37 points to 8283.14, while service stocks slid by 0.09 percent or 1.37 points, finishing at 1467.78. Dominant carrier Philippine Long Distance Telephone Co., the most traded stock, finished P10 higher to P2,460. - RJAB Jr., GMANews.TV