Export numbers, overseas markets weigh on PHL shares

Shares on the Philippine Stock Exchange (PSE) fell more than 1 percent in modest trading, weighed down by a significant drop in export receipts and the losses incurred by overseas markets. “We are down by about 1.4 percent or about 61 points but in modest trading of around P4.6 billion," said analyst Lawrence de Leon of Accord Capital Equities Inc. “It’s mostly because of the US and European markets which were down overnight, and Asian markets are also down," said De Leon. The main PSE index fell 61.14 points or 1.4 percent to close at 4,285.06. More than 4.232 billion shares valued at P4.912 billion. “We’re down but not that big," De Leon said, citing third quarter results “now coming out and quite positive. That’s what buoying the market." De Leon noted the “macro side… that is now happening," with exports down by 27.4 percent in September. “In the last few months, lumiliit ang trade numbers and that’s having an impact on the market," Accord Capital’s analyst said. “Asian stocks fell sharply on Thursday after soaring Italian borrowing costs stoked fears the debt crisis in the euro zone's third biggest economy will overwhelm its financial defenses, raising the risk of a break-up of the currency area," according to a Reuters report. In a separate report Reuters noted, “US stocks tumbled 3 percent on Wednesday in the market's worst day since mid-August as a spike in Italian bond yields signaled the European debt crisis had worsened… The Dow Jones industrial average was down 389.24 points, or 3.20 percent, at 11,780.94." Accord Capital’s De Leon said in technical terms, the PSEi is still within the trading range of 4,200 and 4,400. Ninety-six Philippine issues declined, 49 posted gains and 30 were unchanged. — GMA News