PSEi tumbles 2.24% amid concerns over Egypt unrest

The Philippine Stock Exchange index dropped sharply Monday despite the better-than-expected 2010 gross domestic product figures released earlier in the morning. Jasper Jimenez, trader of Banco de Oro Securities Inc., said the robust economic growth last year "failed to boost investor sentiment." Investors were rather concerned over the gripping tensions in Egypt, he pointed out. The PSEi shed 88.87 points or 2.24 percent to close at 3,881.47, according to the PSE's online market information as of 12:10 p.m. Value turnover reached P5.114 billion, with more than 7.224 billion shares traded. There were 106 decliners, 33 advancers, and 35 issues unchanged during Monday's trading session. Demonstrators from all segments of Egyptian society have taken to the streets for nearly a week seeking for the departure of President Hosni Mubarak. "Anti-government riots in Egypt have spooked global markets, including the Philippines. If the chaos in that country escalates, it will absolutely have effects on oil prices," Jimenez said. He said various countries "cannot sustain" a good economic run if oil prices will keep on surging anew. Last Friday, crude oil prices rose as players raised concerns that protests will deepen across the Middle East, touted as the major reservoir of abundant crude oil. The National Statistical Coordination Board announced Monday that the Philippine economy grew by a robust 7.3 percent last year, its strongest performance during the post-Marcos regime. — JE/OMG, GMANews.TV