Philippine stocks’ worst dip in 3 years
The main Philippine Stock Exchange index lost 210.14 points, or 5.13 percent, to close at a six-month low of 3,885.96.
This was the worst single-day performance since Oct. 27, 2008, when the PSEi plummeted 12.3 percent after US investment bank Lehman Brothers collapsed under the weight of the US sub-prime property crisis.
The local index had the gains made earlier this year wiped out and is now 7.5 percent below the end-2010 level.
All counters were sold down, with the mining/oil and property counters the most battered, falling 9.87 percent and 6 percent, respectively.
Some P8.2 billion worth of shares changed hands in trading that saw nearly 13 stocks declining for every single stock that advanced. Foreign selling exceeded foreign buying by P270 million for the day.
It’s said to say but yesterday was really bad for the stock market.
“The 3Rs continue to feed the bears—recession fears on the global economy, renewed risks in the capital markets especially with possible default of European countries and the retreat of investors to safer investment instruments,” said Astro del Castillo, managing director at local fund management firm First Grade Holdings.
“Fundamentally, we are stable but definitely not immune to the realignment of fund managers,” he said.
This may be an opportunity for bargain hunters who would take advantage of the drop of stock prices. I’m quite excited about this and might buy. It’s still sad though..Share on Facebook