Markets slide on dismal imports data


PHILIPPINE share prices on Wednesday tumbled for the second consecutive session on the back of mixed indicators from the United States and disappointing local imports data.

At the Philippine Stock Exchange, the composite index dropped 24.80 points, or 0.57 percent
to 4,336.63, while the broader all-shares index fell 11.41 points, or 0.38 percent to 3,009.52. All six counters finished in the red led by the 1.38 percent decline in the property sub-index.

A total of 13.18 million shares worth P3.98 billion changed hands. Decliners beat advancers, 86 to 60, while 47 stocks were unchanged.

“Local investors took cue from abroad, given the lack of fresh leads at home,” said Freya Natividad, investment analyst at 2TradeAsia.com.

The latest imports data, which grew at its slowest pace in five months, partly contributed to the local equity market’s decline.

“The latest data is a bad omen of things to come. It is a leading indicator of exports, which fell by 14.6 percent year-on-year last October,” said AB Capital Securities Inc.

Coming off a long weekend, the Dow Jones industrial average resumed trading on a soft note, losing 2.65 points, or 0.02 percent, to 12,291.35 after consumer confidence rose to an eight-month high, but home prices fell in major US cities.

“Although some cheered the improved latest economic reading in the US, worries over [the] absence of clear agreement on Europe’s debt predicament still persisted,” said Natividad.

For today, trading in the local stock market may remain lackluster with a negative bias. It is likely to stay within the 4,320 to 4,400 range.

Asian currencies fell Wednesday, with trading thinned by year-end holidays and mixed economic news out of the US and Japan.

At the Philippine Dealing System, the peso weakened for three consecutive days when it closed at 43.970 against the US dollar, or 13 centavos lower than the previous finish of 43.840.

The dollar-peso pair opened at 43.850 with bids ranging from a high of 44.020 to a low of 43.850.

Total trading volume eased to $699.780 million from $750.550 million on Tuesday. 

Comments