Philippine stocks track Dow, sharply lower in early trade

Local stock market players remained cautious early Friday, locking in gains and taking their cue from the latest losses in Shanghai and New York. As of 9:47 a.m. the 30-company Philippine Stock Exchange composite index was trading at 3,108.67 points, down 81.45 or 2.55 percent from Thursday’s close of 3,190.12. Losers were whipping gainers 79 to 4 while there were 21 unchanged issues. Volume being traded had reached 1.63 billion worth P568.44 million. The local market was tracking movement in the Dow Jones and Shanghai Stock Exchange. The Dow lost as much as 209 points overnight before closing lower by 34. The Dow had once again taken its cue from Chinese stocks, which fell 2.9 percent Thursday. 2TradeAsia managing director Grace Cerdenia, in a note to clients, said trading this Friday will be cautious as players opt to cash in gains following Thursday’s 4 percent recovery, and pervasive weakness in markets abroad. However, Cerdenia assured that the local bourse’s weakness is temporary, and that an uptrend would resume on the back of the country’s stable economic fundamentals. “We continue to believe it would be a temporary aberration, as fiscal as well as monetary policies at home have already been reinforced to support fundamental merits," Cerdenia said. Global markets have generally been weak since the Shanghai Stock Exchange fell nearly 9 percent on Tuesday, amidst talks of a slowing economy. The fall in Shanghai triggered a 416 point plunge in the Dow early Wednesday, which in turn caused a wave of sell-offs across the globe. On Wednesday, Chinese stocks recovered, leading to gains in both the Dow and the local bourse on Thursday. However, come Thursday, the Shanghai index continued its roller coaster ride, losing 2.9 percent.-GMANews.TV