Stocks stumble for 4th consecutive day

MANILA, Philippines - Local share prices continued their downtrend yesterday on lingering concerns over the slowing economies of both the US and China.

Stocks stumbled for a fourth day, a complete reversal of the preceding full-week advance.

The benchmark Philippine Stock Exchange index (PSEi) stayed below the 7,000 level, closing at 6,917.55 or 9.36 percent (0.13 percent) lower while the broader All Shares index declined to 3,991.08.

Most indices ended in negative territory except the Financials, Industrial and Mining and Oil which closed higher.

Volume turnover amounted to P7.087 billion. Decliners outnumbered advancers, 96 to 73, while 45 stocks were unchanged

“There’s spill-over from the concerns from the US, and China’s PMI,” said Luis Limlingan, managing director at Regina Capital.

“The PSEi dropped below 6,900 wiping out roughly half of the aggregate gains it booked since hitting a low of 6,603.34 last Aug. 25.

This could be reflective of the lingering fears over China and a full discounting of the US Fed’s decision to hold rates at the conclusion of its meetings exactly a week ago, “ said Justino Calaycay of Accord Capital.

He said there could also be creeping concern on the domestic economy.

Against this backdrop, there are still no positive leads that would encourage investors to park their funds in the market, Calaycay added.

“Suffice to say that up to this point, the market has not received any hints to overturn the pessimism that currently envelops and roils global financial markets,” he said.