Monday, March 17, 2008
Stock index plunges 3.9% to lowest in more than a year (7:15 p.m.)
MANILA -- Philippine shares plummeted Monday to their lowest level in more than a year, tracking Wall Street's losses at the end of last week as US credit concerns intensified.
The Philippine Stock Exchange Index fell 112.85 points, or 3.9 percent, to 2,793.68 - its lowest finish since November 30, 2006. Losers outnumbered gainers 118 to five, while 26 stocks were unchanged.
Volume was moderate as most investors are on vacation ahead of the Lenten break. Local markets will be closed Thursday and Friday.
"Bear Stearns was the knockout punch," said Astro del Castillo, managing director of First Grade Holdings.
The troubled US investment bank was sold to JPMorgan Chase over the weekend to avert a bankruptcy amid the spreading credit crisis.
"There could be more surprises in the days or weeks ahead, and investors find it wise to take to the sidelines for now," del Castillo said.
Philippine Long Distance Telephone Co., the country's largest telecoms provider, shed 4 percent to 2,620 pesos.
Ayala Corp., the country's largest conglomerate, fell 3.1 percent to 387.50 pesos.
The peso closed at a three-month low against the US dollar as investors closed out risky positions during a sell-off in Asian financial markets. The dollar closed at 41.72 pesos, up from 41.54 pesos on Friday. (AP)
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