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Philippine stocks fell Monday, extending the key index’s
worst decline in four months, on concern a housing slump
in the US will dent spending in the nation’s biggest
overseas market and cool demand for riskier assets.
“The US
is showing signs of slowing down and that’s making
investors wary,’’ said Olan Caperina, who helps oversee
about $4.7 billion at BPI Asset Management Inc.. “There
is also risk aversion toward emerging markets.’’
Metropolitan Bank & Trust Co. and SM Prime Holdings Inc.
led declines among the nation’s largest companies. GMA
Network Inc. gained on its first trading day after its
chairman said second-quarter net income rose from the
first three months of the year.
The
Philippine Stock Exchange index lost 51.30, or 1.5
percent, to 3,467.46 at the close, after sliding 3.9
percent on July 27. The measure, which dropped as much
as 2.4 percent earlier Monday, closed at a two-month
low.
Metropolitan Bank, the nation’s largest lender by
assets, fell P3, or 4.7 percent, to P60.50, the lowest
since May 5. SM Prime Holdings Inc., the largest
shopping mall operator, lost 50 centavos, or 4.2
percent, to P11.50.
US
shares plunged on July 27 for a second day, sending the
Standard & Poor’s 500 Index to its worst weekly drop in
five years after the Commerce Department said
residential investments fell 9.3 percent in the second
quarter, following a 16 percent contraction in the
previous three months.
Consumer
spending in the
US
slowed to 1.3 percent, compared with 3.7 percent in the
first quarter. The US buys about 16 percent of
Philippine exports and accounts for more than half of
the funds sent home by Filipinos working abroad.
“As long
as US stocks keep going down, riskier assets like
emerging markets won’t look attractive,” Caperina said.
“This risk aversion will last until investors see some
stability in the US.’’
The
funds sent home by Filipinos make up 10 percent of the
Philippine economy, spurring spending on food, clothing,
mobile phone and homes.
Philippine Long Distance Telephone Co., the nation’s
largest company by market value, declined P30, or 1.1
percent, to P2,595, the lowest since June 7. Ayala Land
Inc., which makes about 30 percent of its home sales to
overseas Filipinos and their families, fell 75 centavos,
or 4.6 percent, to P15.75.
Megaworld Corp., which makes 20 percent of its home
sales to overseas Filipinos, slumped 15 centavos, or 3.9
percent, to P3.70.
GMA
Network, the second-largest broadcaster, jumped P2, or
24 percent, to 10.50, from its P8.50 initial share
price. Its depositary shares, which were sold at the
same price, last traded at P11.
Second-quarter profit exceeded the P441-million net
income posted in the first three months of the year,
chairman Felipe Gozon told reporters Monday. GMA
Network, which earlier this month completed the sale of
P7.8 billion of common and depositary shares, said last
week that overseas investors bid for 29 times more than
the shares available for sale in the initial public
offering.
ABS-CBN
Broadcasting Corp., the nation’s largest TV and radio
network operator, fell P1.50, or 4.2 percent, to P34.50,
its biggest loss since March. The stock has climbed 70
percent and is trading at 30 times its earnings, double
that of the main stock measure. ABS-CBN is the
third-biggest gainer this year in the 33-member main
stock index.
“ABS-CBN
appears expensive at the moment,” said James Lago, head
of research at Westlink Global Equities. “Some investors
are probably switching out, betting they can get better
returns from GMA.”
Shares
worth P16.92 billion were traded, three times more than
the six-month daily average. Losers outnumbered gainers
101 to 25, with 44 stocks unchanged in the broader
market. |
