Philippine stocks in huge plunge

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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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. 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...

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.



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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