PHL share prices drop over 3% at noon recess on exports, jobs data

Share prices on the Philippine Stock plunged during much of the morning session as investors took to profit-taking on weak exports and high unemployment rate in April reported by the government.

 

"The decline is across the board. Investors are taking profit after market went up. Exports and unemployment data in April released today continued to drive the sell off," said Juan Rafael Supangco, head of research at Angping & Associates Securities Inc.

 

"Investors are gauging the economic growth is a jobless growth. It is a sign that the growth might not be sustainable," he added.

 

The bellwether PSEi tumbled by 219.08 points or 3.19 percent to 6,656.52 at the noon recess. The broader all-shares index fell by 105.26 points or 2.49 percent to 4,124.35.

 

All indices were in the red. Losers outnumbered gainers 128 to 28, while 28 issues were unchanged.

 

Early Tuesday, the NSO reported exports receipts in April amounted to $4.041 billion, down 12.8 percent from $4.328 billion a year earlier, the steepest drop since February's 15.6 percent contraction.

 

In a separate report, the NSO said unemployment rate in the same month climbed to 7.5 percent from 6.9 percent a year earlier. 

 

"The decline is expected to continue in the afternoon. Volatility in the market is also expected in the next few days..." Supangco said. — VS, GMA News