The Philippine Stock Exchange index (PSEi) lost 0.21% or 8.95 points to close at 4,282.77, while the broader all-share index lost 0.44% or 13.29 points to settle at 2,986.21.
“The local bourse lost steam as investors chose to protect their capital after Standard & Poor’s warned it may put euro zone nations for possible downgrades,” said brokerage firm RCBC Securities, Inc. in a market report yesterday.
“The selldown was broad-based and affected even Monday’s outperformers from the mining and banking sectors.”
“Many investors to await the outcome of [the European Union summit on Friday],” said analyst Claire S. Quiray of brokerage firm Regina Capital Development Corp. in a telephone interview yesterday.
Investors ignored the local news that inflation fell to 4.7% in November from 5.3% in previous month.
Ms. Quiray said the news was expected. “It can help the market stabilize in the next few days, but focus will still be on Europe,” she added.
S&P said it had put the ratings of 15 euro zone economies -- including France and Germany -- on review and could downgrade these due to the “deepening political, financial and monetary problems within the European Economic and Monetary Union.” It said it was waiting to see the outcome of the summit.
Before S&P’s announcement, French President Nicolas Sarkozy and German Chancellor Angela Merkel, meeting before the summit, said they would push for changes to the EU treaty to create a fiscal union among euro zone members.
The news from Europe forced US markets to pare gains overnight, and other Asian markets to slump and European markets to fall upon opening yesterday.
At home, mining stocks took the brunt of yesterday’s losses. PSEi stocks Philex Mining Corp. shed 2.19% or 50 centavos to P22.30, while Semirara Mining Corp. sank by 0.57% or P1.20 to P208.60.
Non-PSEi stock Lepanto Consolidated Mining Co. “A” -- open to local investors only -- and “B”-- open to all investors -- plummeted, respectively, by 6.78% or 12 centavos to P1.65 and 4.21% or eight centavos to P1.82.
“If you look at the index, Lepanto is a heavyweight, it comprises a big portion of the mining subindex, so if Lepanto’s price drops, the other stocks are also affected,” Ms. Quiray said.
A sell-off of property issues continued led by SM Development Corp. that fell by 2.92% or 21 centavos to P6.99.
Alliance Global Group, Inc. skidded by 2.39% or 26 centavos to P10.62, while SM Prime Holdings, Inc. lost 1.56% or 20 centavos to P12.60.
Turnover was unremarkable at P5.28 billion yesterday versus P5.81 billion on Monday. Decliners buried advancers 102 to 50, while 48 stocks were unchanged.
Most subindices sank and closed in negative territory, led by mining and oil that plunged by 3.03% or 757.24 points to 24,262.39, followed by property that shed 0.67% or 9.99 points to 1,488.72.
Services, however, managed to close in positive territory, inching up by 0.27% or 4.10 points to 1,549.47. Narrow trading is expected in the next days leading to the EU summit in Brussels.For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
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