Index plunges on weak US, reg’l markets

MANILA, Philippines - Regional political tensions and already high valuations prompted investors to dump stocks yesterday.

The Philippine Stock Exchange index plunged 1.75 percent or 120.35 points to end at 6,762.38, while the broader all shares index declined 1.70 percent or 69.68 points to 4,040.94.

“Political tensions and disappointing earnings combined to draw some apprehension and justify a sell-off, particularly with markets generally trading near 52-week highs and valuations remaining above historical norms,” said Justino B. Calaycay Jr., an analyst at Accord Capital Equities Corp.

“A slump in US equities and an early drop in East Asian markets which are among the first to open the regional and global trading day set the tone for yesterday’s activity,” Calaycay added.

Wall Street retreated on Tuesday due to wide-scale selling, particularly for the retail segment. The Dow Jones industrial average shed 0.83 percent or 137.55 points to end at 16,374.31, while the broader Standard & Poor’s 500 index lost 0.65 percent or 12.25 points to close at 1,872.83.

Closer to home, most Asian markets were generally in the red on the back of tensions in Thailand and the strength of the yen. Japan’s Nikkei 225 dropped 0.24 percent or 33.08 points to 14,042.17.

Locally, all counters were in the negative territory, led by mining and oil that slumped 2.77 percent or 448.34 points to finish at 15,735.67, while the property sector slipped 2.11 percent or 58.15 points to 2,698.42.

Investor participation eased, with turnover value dropping to P9.06 billion from P10.41 billion on Tuesday. Decliners dominated advancer, 148 to 44, while 32 stocks did not change.