Monday, July 11, 2005
Shares fall on Fitch downgrade, political woes (3:00 p.m.)
MANILA -- Philippine stocks fell Monday, hurt by the prospect of a protracted political crisis and a decision by Fitch Ratings to downgrade the outlook for the country's credit rating.
The 30-company Philippine Stock Exchange Index dropped 23.50 points, or 1.3 percent, to 1,852.78, snapping a two-day run that saw the market gain 3.5 percent.
The broader All Shares Index finished 13.45 points lower at 1,135.24. Losers beat gainers 45 to 11, with 32 shares unchanged.
Except for the financial subindex, which gained on the strength of the Bank of the Philippine Islands, and the unchanged oil sector, all other sectoral indicators retreated.
Blue chips Ayala Land, SM Prime Holdings and Ayala Corp. led the decliners. Ayala Land declined 4.1 percent to P7.10, SM Prime retreated 2.7 percent to P7.10, while Ayala Corp. lost 2.6 percent to P280.
"Events over the weekend highlight the fact that this (political crisis) will drag on," said Mark Alan Canizares, an investment analyst at CitisecOnline.com. "Fitch's action tilted sentiment further."
On Sunday, Catholic bishops didn't join the calls demanding President Gloria Macapagal Arroyo's resignation.
The bishops' decision helped Arroyo after a number of her allies withdrew their support Friday, sparked by the resignation of several Cabinet members.
Meantime, Fitch downgraded the outlook on the Philippines' credit rating to negative from stable due to the political situation and after the broader value-added tax was suspended, a move which endangers the government's fiscal reform effort. (AP) |
