Philippine stock market reopens, index plunges 6%

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Philippines World MarketsThe Philippines Stock Exchange reopened on August 22 after after severe floods and a public holiday closed markets this week.

As expected, the main index PSEi dropped significantly, down 6.12 per cent as of noon in heavy trading on investors’ concerns over the damage the floods did on the Philippine economy, as well as in the wake of a broader sell-off on Southeast Asian bourses. it was the PSEi’s biggest drop since 2008,

Among the biggest movers, SM Investments and Alliance Global Group fell more than 8 per cent, Alaya Land more than 7 per cent and Philippine Long Distance Telephone Company more than 4 per cent.

Traders noted the Philippines has better fundamentals than some other Southeast Asian economies, but markets are eager to escape regional capital markets as debt levels climb, economic growth became more volatile and rising global interest rates dampen the appeal of Asia’s riskier emerging markets.

The combination of Indonesia’s record current-account gap, Thailand’s economic contraction, Malaysia’s growing economic woes and speculation that the Federal Reserve will pare stimulus added to the problems. The MSCI Southeast Asia Index sank 5.5 per cent this week to the lowest level since July 2012.

The Philippine peso, the Thai baht, the Malaysian ringgit and the Indonesian rupiah all dropped on the news.

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Reading Time: 1 minute

The Philippines Stock Exchange reopened on August 22 after after severe floods and a public holiday closed markets this week.

Reading Time: 1 minute

Philippines World MarketsThe Philippines Stock Exchange reopened on August 22 after after severe floods and a public holiday closed markets this week.

As expected, the main index PSEi dropped significantly, down 6.12 per cent as of noon in heavy trading on investors’ concerns over the damage the floods did on the Philippine economy, as well as in the wake of a broader sell-off on Southeast Asian bourses. it was the PSEi’s biggest drop since 2008,

Among the biggest movers, SM Investments and Alliance Global Group fell more than 8 per cent, Alaya Land more than 7 per cent and Philippine Long Distance Telephone Company more than 4 per cent.

Traders noted the Philippines has better fundamentals than some other Southeast Asian economies, but markets are eager to escape regional capital markets as debt levels climb, economic growth became more volatile and rising global interest rates dampen the appeal of Asia’s riskier emerging markets.

The combination of Indonesia’s record current-account gap, Thailand’s economic contraction, Malaysia’s growing economic woes and speculation that the Federal Reserve will pare stimulus added to the problems. The MSCI Southeast Asia Index sank 5.5 per cent this week to the lowest level since July 2012.

The Philippine peso, the Thai baht, the Malaysian ringgit and the Indonesian rupiah all dropped on the news.

Do you like this post?
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