Local stocks dip 2% as peso gains four centavos

May 15, 2012 10:35 pm 

By Joann Santiago

MANILA, May 15 – The local bourse retreated to the 4,900 level Tuesday on account mainly of the on-going political situation in Greece and its impact in the Eurozone as well as the fear for China's soft-landing.

The main Philippine Stock Exchange index (PSEi) lost 106.17 points, or 2.0885 percent to 4,977.45 points from day-ago’s 5,083.62 points.

Also, the broader all shares index shed 47.32 points or 1.4149 percent to 3,297.16 points from Monday’s 3,344.48 points.

Only the mining and oil index posted gains among the sectoral indices. It registered an increase of 392.74 points or 1.672 percent to 23,836.62 points over the previous day’s 23,443.88 points.

Losers continue to surpass on gainers at 106 to 71 while 31 were unchanged.

Value turnover reached P7.34 billion after 3.24 billion shares changed hands.

Accord Capital, in a report, said “the number of ‘what ifs” have increase” after the recent Greek polls failed to sit a new government.

“Until the premises of these questions are answered to the satisfaction of the collective minds of the markets, we can expect negative volatility to be a staple in short term trades,” it said.

However, the report maintains its positive outlook on the domestic bourse for the whole year but warned investors to be cautious “on trades moving forward until some clarity is reached on the currently contentious issues.”

Meanwhile, the local unit opened weaker against the US dollar but ended the day on brighter note.

The peso gained P0.04 against the dollar after closing at 42.66, its strongest for the day, from Monday’s 42.70 finish.

It started the day at 42.78 against a dollar from day-ago’s 42.55. It dipped to 42.83 resulting to an average of 42.748.

Total volume reached US$ 1.06 billion, nearly double the US$ 697.49 million. (PNA) RMA/JS/utb

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