PHL share prices drop amid European debt woes

Philippine share prices declined on Wednesday, snapping a five-day upswing as Europe continues to reel over its debt woes. The benchmark 30-company Philippine Stock Exchange index slipped 32.43 points or 0.74 percent while the all shares slid 20.91 points or 0.68 percent to 3,035.38. Market breadth was negtive with 102 losers trouncing 44 gainers and 36 stocks that closed unchanged. All six sectoral indices retreated with Mining & Oil suffering the worst with a 3.60-percent dip. Volume traded reached 5.17 billion valued at P6.59 billion. Although the market remains optimistic on the domestic economy's growth, the possibility of a second global recession is keeping investors anxious. "There seems to be little doubt on the present strength of the broad economy's fundamentals. What is being put to question is whether the numbers are strong enough to withstand a worst-case scenario - a second recession, this time originating from Europe's fiscal crisis. This is a valid question that remains to be answered to the satisfaction of the market," said trader Justino Calaycay Jr. of Accord Capital Equities. Owing to these doubts, Calaycay said, "equity investors may be content on a short-, or at best, medium-term , view for their portfolios." Despite Europe leaders' plans to contain the region's debt woes, and even Fitch's affirmation of the AAA credit rating of the US, Wall Street still posted losses overnight with the Dow losing 0.67 percent and Nasdaq sliding 1.4 percent. As of mid-trade Wednesday, Asian markets were generally bullish with main indices in Australia, Hong Kong and New Zealand trading higher by about one percent each. In the local market, four of the five most active stocks closed in the red. Lepanto Consolidated Mining Co. "A" , the day's top traded, shed P0.06 or 4 percent at P1.44, while its "B" shares lost P0.08 or 4.91 percent at P1.55. Alternative power producer Energy Development Corp. dropped P0.09 or 1.5 percent to P5.91. Conglomerate San Miguel Corp. fell P1.70 or 1.34 percent to P125. CMA/OMG, GMA News