Philippine stocks in huge plunge

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A visitor observes trading at the publicThe benchmark Philippine Stock Exchange Index has plunged 21 per cent since its peak in May 2013 as international investors pulled a net $955 million from the country’s equities. The gauge traded at 21 times projected 12-month earnings in May, the highest after Greece among emerging and developed markets.

Weakening profits, accelerating inflation and the devastation caused by Typhoon Haiyan in November have dented confidence in an economy that expanded at almost three times the global average annual pace from 2008 to 2012. Now near their cheapest level in a year, shares in Southeast Asia’s fifth-largest economy are still deemed too expensive to buy, according to international investment houses.

Earnings of the 30 companies on the PSE index are forecast to grow an average 5.8 per cent in the next 12 months, the slowest after Turkey among developing nations, according to data compiled by Bloomberg.

The nation’s shares have tumbled along with those of its neighbours since May 22, when Fed Chairman Ben S. Bernanke said he may trim his $85 billion in monthly bond purchases this year and end it by mid-2014, prompting the flight of foreign capital from developing-nation assets. Indonesia’s Jakarta Composite Index fell 20 per cent and Thailand’s SET Index slid 18 per cent.

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Reading Time: 1 minute

The benchmark Philippine Stock Exchange Index has plunged 21 per cent since its peak in May 2013 as international investors pulled a net $955 million from the country’s equities. The gauge traded at 21 times projected 12-month earnings in May, the highest after Greece among emerging and developed markets.

Reading Time: 1 minute

A visitor observes trading at the publicThe benchmark Philippine Stock Exchange Index has plunged 21 per cent since its peak in May 2013 as international investors pulled a net $955 million from the country’s equities. The gauge traded at 21 times projected 12-month earnings in May, the highest after Greece among emerging and developed markets.

Weakening profits, accelerating inflation and the devastation caused by Typhoon Haiyan in November have dented confidence in an economy that expanded at almost three times the global average annual pace from 2008 to 2012. Now near their cheapest level in a year, shares in Southeast Asia’s fifth-largest economy are still deemed too expensive to buy, according to international investment houses.

Earnings of the 30 companies on the PSE index are forecast to grow an average 5.8 per cent in the next 12 months, the slowest after Turkey among developing nations, according to data compiled by Bloomberg.

The nation’s shares have tumbled along with those of its neighbours since May 22, when Fed Chairman Ben S. Bernanke said he may trim his $85 billion in monthly bond purchases this year and end it by mid-2014, prompting the flight of foreign capital from developing-nation assets. Indonesia’s Jakarta Composite Index fell 20 per cent and Thailand’s SET Index slid 18 per cent.

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