|
STOCKS
fell for a fourth day, driving the benchmark to the
lowest since August, as a drop in oil prices and a
Merrill Lynch & Co. survey of money managers intensified
concern global growth will slow.
Ayala
Corp. and SM Investments Corp. paced declines among the
nation’s biggest companies on concern that slower growth
in the US and Europe will hamper the Philippines in
sustaining its fastest expansion in at least three
decades.
“The
Philippines is not as independent as most investors like
to think from a slowdown in the US and Europe,’’ said
Rico Gomez, who helps manage about $1 billion in assets
at Rizal Commercial Banking Corp. “Most investors are
worried that a decoupling is not possible because a good
chunk of our growth is from the US or sourced
externally.’’
Philex
Mining Corp. led declines among metal producers after
prices of copper and gold retreated to a seven-day low.
Filinvest Land Inc. gained on speculation the company
started buying its shares when the stock fell as much as
4.9 percent earlier Thursday.
The
Philippine Stock Exchange index lost 102.77, or 3.1
percent, to 3,248.89 at the close, completing a
four-day, 7.3- percent loss that sent the measure to it
lowest since August 29.
Only two
stocks rose among the 32 members of the benchmark, which
posted Thursday its sharpest decline since a 3.2-percent
loss on January 3. The measure has lost 16 percent since
closing at a record on October 8.
Ayala,
the second-largest Philippine company by market value
which has investments in banks, property and
telecommunications, slid P17.50, or 3.6 percent, to
P470. SM Investments, owner of the nation’s largest
grocer and department store operators, dropped P15, or
4.7 percent, to P305.
Corporate earnings worldwide will probably miss
analysts’ estimates in the next 12 months as a US
economic slowdown weighs on global growth, a Merrill
Lynch survey of money managers showed, with 77 percent
of the 195 polled expecting profits will increase less
than 10 percent.
Separately, oil dropped 1.2 percent to $90.84 a barrel
Wednesday on the New York Mercantile Exchange. The
contract was recently at $91.08.
US
stocks fell Wednesday after Intel Corp., the world’s
largest computer-chip maker, said first-quarter sales
will be as much as 6.9 percent below analysts’
estimates.
The
Philippines counts on exports, including electronics
such as disk drives and mobile-phone chips, for about
two-fifths of the economy while it relies on funds sent
home by Filipinos based abroad for another 10 percent.
The US is the biggest buyer of Philippine exports and
home to the largest overseas Filipino population,
helping the Southeast Asian nation expand last year at
its fastest in at least three decades.
Jollibee
Foods Corp., the largest Philippine fast-food company,
dropped P2.50, or 5.2 percent, to P45.50. Ayala Land
Inc., which relies on overseas Filipinos for about 30
percent of its home sales, lost 75 centavos, or 5.3
percent, to P13.50. Philippine Long Distance Telephone
Co., which accounts for 28 percent of the benchmark,
fell P65 pesos, or 2.2 percent, to P2,920, its lowest
close since October 1.
Philex,
the largest Philippine metal producer, lost 50 centavos,
or 5 percent, to P9.50. Copper for three months delivery
dropped 2.2 percent on the London Metal Exchange
Wednesday, while gold for immediate delivery declined
1.3 percent on the New York Mercantile Exchange.
Separately, Filinvest Land, the fifth-largest Philippine
homebuilder by market value, gained 4 centavos, or 3.3
percent, to P1.26 on speculation the company bought its
own shares when the stock fell as much as 4.9 percent.
The company said in December it would spend P1.5 billion
to buy its own shares and support the value of its
stock.
Shares
worth P4.08 billion were traded, 11-percent less than
the six-month daily average. Almost 10 stocks fell for
each that gained on the exchange. (Bloomberg) |
