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PHL stocks down on Philex news, euro woes

August 3, 2012 7:41pm
Shares on the Philippine Stock Exchange dropped in moderate trading Friday, toned down by profit-taking on Europe’s lack of action in protecting the euro.
 
The main PSEi slid 7.49 points or 0.14 percent to close at 5,285.91.
 
The European Central Bank (ECB) met on Thursday but took no concrete steps to protect the euro other than hinting future actions to solve the euro zone’s fiscal woes – this after ECB president Mario Draghi said late July that they would no anything to protect the euro, Reuters reported.
 
The news in Europe is spilling over in the local bourse, with cautious investors cashing in on gains, 2Trade Asia head Grace Cerdeña told GMA News Online.
 
“Early in the day, we mentioned that sentiment might slide with the European Central Bank’s (ECB) lack of action to support the euro,” Cerdeña said.
 
More than 1.647 billion shares valued at P5.386 billion were traded.
 
Losers led winners 95 to 73, with 42 issues unchanged.
 
Highlight Friday’s trading was the decline of Philex Mining Corp., said Freya Natividad, research head at F. Yap Securities Inc.
 
Philex suspended operations in its mine after a typhoon and a tropical depression flooded an underground tunnel. 
 
The situation drove down Philippine shares by 7.59 percent, Natividad noted.
 
Philex exerts a strong weight on the index, she said.
 
The mining and oil sector sub-index slumped 627.13 points or 2.72 percent.
 
Wall Street also responded negatively on the lack of firm action from Europe, Natividad added. 
 
The Dow Jones Industrial Average went down 92.18 points or 0.71 percent to close at 12,878.88 Thursday. Nasdaq lost 10.44 points or 0.36 percent to close at 2,909.77, according to a Reuters report. — VS, GMA News
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