Philippine stock market reopens, index plunges 6%

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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The 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...

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.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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