Stocks dive on deepening oil slump

MANILA, Philippines – Local shares took another beating as a steep drop in oil prices prompted investors to seek out safe haven assets.

The benchmark Philippine Stock Exchange index (PSEi) lost 120.97 points or 1.82 percent. Total value turnover reached P5.8 billion with the decliners edging out advancers, 123 to 51 while 33 stocks were unchaged.

Analysts said a fresh slide in oil to below $30 a barrel  reinforced concerns that global growth is slowing.

All indices closed  in the red, with the holding firms and industrial indices registering the biggest decline of 124.61 points and 105.95 points, respectively.

Gainers were led by San Miguel Corp., (1.27 percent), Robinsons Land Corp. (1.24 percent) and BPI (0.224 percent).

Losers were Energy Development Corp. (5.16 percent), Megaworld (4.66 percent), Bloomberry (4.49 percent).

Asian shares likewise  tumbled as oil prices continued to drop, prompting investors to go for fixed-income and other safer assets.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 2.1 percent led by a 2.7 percent fall in Hong Kong shares while Japan’s Nikkei lost 3.2 percent.

Analysts said there’s no sign of improvement in the oil market, with demand also slowing in emerging markets.

The Brent crude futures, the world’s oil benchmark, fell 0.7 percent to $32.48 per barrel, extending losses so far this week to more than six percent. US crude futures slipped 0.5 percent.