PSEi slumps on tepid ECB stimulus plan

MANILA, Philippines - The stocks market continued to slump, taking its cue from regional bourses on renewed concerns after the European Central Bank’s stimulus package fell short on market’s high expectations.

The benchmark Philippine Stock Exchange index (PSEi) stayed below the 7,000 level, finishing at 6,921.93, or 72.17 points lower than Thursday’s close.

Similarly, the broader All Shares index fell below the 4,000-mark, ending 34.48 points lower at 3,993.23.

All other indexes stayed in negative territory, with the property and the industrial indexes recording the biggest decline.

Value turnover was thin, reflective of a massive sell-off. This amounted to P4.96 billion.

Not surprisingly, decliners edged out advancers, 112 against 50 while 36 stocks were left unchanged.

Elsewhere in the region, Asian equities also took a beating.

Analysts said the drama started after the ECB cut its deposit rate deeper into negative territory and extended its asset buying by six months.

The Shanghai Composite, for instance, ended 59 points lower or 1.66 percent at 3,525 as investors remained cautious while Japan’s Nikkei 225 hit a three-week low, down 435 points or 2.2 percent at 19,504.48 and trading mostly in the red across the board.

Similarly, in South Korea, the Kospi continued its losing run this week and closed 20 points or one percent lower at 1,974, its worst performance in over three weeks.