Stocks suffer heavy losses on China woes

MANILA, Philippines - The stock market suffered a massive decline yesterday following China’s decision to accelerate the depreciation of the yuan.

The Philippine Stock Exchange index suffered a bloodbath, plunging 2.86 percent, or 195.02 points, to close at 6,618.88. The broader All Shares index followed suit, dropping 2.53 percent or 99.07 points to close at 3,814.48.

“China filled investors’ consciousness with doom for the second time this week as another circuit breaker-inducing slide marked trades, serving as bookends to the year’s first week of action,” said Justino Calaycay, analyst at Philstocks Financials.

The further weakness in yuan, dragged share prices in the region lower.

All local counters ended in the negative territory, with each losing more than one percent.

Mining and oil, property, industrial and holding firms were the biggest casualties in yesterday’s trading as they fell by more than three percent.

“There is too much bad news hanging over the trading floor and there seem to be no silver lining – at least not the obvious type – emerging from the horizon. China, as somewhat expected, has risen to the totem pole of these concerns,” Calaycay said.

Value turnover improved slightly but remained thin at P5.42 billion.

Decliners continued their dominance over advancers, 162 to 22, while 26 stocks were unchanged.