Risk aversion over US, euro woes keeps PHL stocks down

Risk aversion from the US and European economic woes kept Philippine shares down in light to moderate trading Tuesday. “It’s more of what’s happening to the world markets, especially in the euro zone and the US that is influencing our market," said Jonathan Ravelas, chief market strategist at BDO Universal Bank. The Philippine market is in search of what prospects await investors in 2012, Ravelas added. The main Philippine Stock Exchange index (PSEi) dropped 9.72 points or 0.22 percent to close at 4,289.75. Except for the industrial and oil and mining stocks, all sub-indices registered declines, according to the online PSE Index Guide. More than 4.539 billion shares valued at P5.279 billion were traded Tuesday. Decliners led advancers 86 to 70 and 42 issues closed unchanged. The big players are reluctant because of the uncertainties with what is happening in Europe and the US, traders said. “We’re like a small boat in a big ocean and suddenly a big ship [what’s happening in the US and European markets] passes by," said Ravelas. “People are trying to see fresh leads [on] where to put their money, that makes things more tentative for the market," he added. The BDO market strategist noted the PSEi is just above the “important support" level between 4,150 and 4,200. “So we are just consolidating, despite the relatively low performance Tuesday," he said. — KG, GMA News