Growth concerns in US, Asia dampen index

MANILA, Philippines - Worries over continuing weakness in the US economy and tensions in the Korean peninsula weighed down Philippine stocks anew.

The Philippine Stock Exchange index gave up another 0.46 percent or 31.58 points to settle at 6,783.72, while the broader all shares index fell 0.39 percent or 16.36 points to 4,216.97.

“I think we glided with Wall Street’s decline,” said Freya Natividad, investment analyst at brokerage firm 2Trade-Asia.com.

“Lower-than-expected US economic data, growth concerns in Asia and uncertainty over a Bank of Japan policy action at the conclusion of its two-day meeting sent markets lower Thursday,” said Justino B. Calaycay Jr., analyst at Accord Capital Equities Inc.

Investors were disappointed with weak data on hiring and service industries, pushing the Dow Jones industrial average down by 0.8 percent or 111.66 points to 14,550.35 while the broader Standard & Poor’s 500 index dropped 1.1 percent or 16.56 points to 1,553.69.

Natividad said continuing tensions between the US and North Korea also weighed down stock prices.

In the local market, all counters were in the negative territory, led by financial firms that shed 0.67 percent or 11.81 points to 1,739.10.

Turnover value sank to P6.71 billion from P10.23 billion on Wednesday. Decliners outplayed advancers, 88 to 71, while 46 stocks did not change.