PSEi plunges 1.4%, reflects global sentiment over health of the US economy

Anxiety over the health of the US economy, the world's largest, crept into the local bourse, pulling Philippine share prices to fall Friday. The bellwether 30-company Philippine Stock Exchange index plunged 63.98 points or 1.42 percent to 4,437.55 while the all shares slumped 48.88 to 3,055.23. Market breadth was negative with 151 losers against 17 gainers and 17 stocks that closed unchanged. All six sectoral indices retreated with Mining & Oil dropping 3.54 percent and Financials falling 2.65 percent. "Liquidate and hold cash is shaping up as the more prudent stance global equity investors have taken after a much-awaited compromise on raising the US debt limit ceiling failed to restore the markets' confidence," said trader Justino Calaycay Jr. of Accord Capital Equities. Talks of a second-dip recession were obviously scaring investors away from stock markets. The fear of a second dip recession for the US was heightened by the weak manufacturing numbers last week and an anticipated rise in unemployment in the US. Overnight, Wall Street fell, with the Dow losing 4.31 percent and Nasdaq retreating 5.08 percent. Asian bourses tracked Wall Street's losses, with main indices in Taiwan, Indonesia, Hong Kong, and Australia trading lower by some five percent each. In the local market, three of the five most active stocks for the day declined. Lepanto Consolidated Mining Co., the day's top traded, dipped P0.05 or 3.79 percent to P1.27. Aboitiz Equity Ventures Inc. rose 1.35 or 3.33 percent to P41.95, while unit Aboitiz Power Corp. shed P0.80 or 2.53 percent at P30.80. Zeus Holdings Inc. climbed P0.20 or 19.23 percent to P1.24. Diversifying conglomerate San Miguel Corp. slid P5.90 or 4.58 percent to P123. -- CMA/OMG, GMA News