RP stocks tumble 2.77% on fears of weakening US economy

Philippine share prices declined for the third consecutive day on Wednesday, dragged by Wall Street's poor performance overnight and a string of bad local news, analysts said. The 30-company Philippine Stock Exchange index tumbled 95.63 points or 2.77 percent to 3,351.66 while the all- share index slid 55.07 points or 2.5987 percent to 2,064.09. Jose Vistan, AB Capital Securities research chief, said the drop in Wall Street coupled with the news that the US' Federation Aviation Administration downgraded the Philippines' aviation safety to Category 2 and the news about new destabilization attempts against the current administration, led to the market's fallout. Dow Jones on Tuesday fell almost 280 points on concerns that the US economy is slipping into recession. “It was a double whammy. Wall Street plus the destabilization and the FAA's action. The downgrade of the country's aviation safety is seen to have an impact to the economy because tourism, among others, will be affected," Vistan said. Losers trounced gainers 125 to 17 while 28 stocks were unmoved. Volume traded reached 2.12 billion valued at P3.56 billion. Telecommunications giant Philippine Long Distance Telephone Co. dropped P25 or 0.83 percent to P2,985. Lopez-led power distributor Manila Electric Co. plunged P4 or 5.37 percent to P70.50. Metropolitan Bank & Trust Co., the country's largest lender in terms of assets, lost P3.50 or 7.2917 percent at P44.50. Ayala unit Bank of the Philippine Islands slipped P2 or 3.42 percent to P56.50. Ayala Corp., the country's largest conglomerate, fell P32.50 or 6.25 percent to P487.50. - Cheryl Arcibal, GMANews.TV