Stocks plunge 3.5% in mid-trade over weak US economy

MANILA, Philippines- Philippine share prices were falling sharply as of mid-trading on Monday, dragged primarily by weak unemployment data in the US, analysts said. As of 10:29 a.m., the Philippine Stock Exchange index had plummeted 107.92 points or 3.56 percent to 2,920.81 while the all-share index had tumbled 53.53 points or 2.88 percent to 1,805.49. Losers were clobbering gainers 94 to 3 while 14 stocks were unmoved. Volume traded had reached 400 million valued at P1.1 billion. Jason Lagrimas, analyst at online stockbrokerage firm 2TradeAsia, cited data that showed a loss of 63,000 jobs, and the record high number of mortgage foreclosures, in 2007 in the US, as what prompted investors to sell their stocks. "Economists were expecting that there would be a gain of some 23,000 jobs in the US, but it turned out there were 63,000 lost jobs. It is another indication that the US is having a rough time," he said. Lagrimas also noted that oil has been trading at $105 a barrel, another reason for worry among players. The decline was being led by the property index which had slipped 5.38 percent to 1,053.71, followed by the mining and oil index which had lost 3.04 percent at 7,119.46. - Cheryl Arcibal, GMANews.TV