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Roundup: Philippine bourse slumps on fears over U.S. Fed tapering

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(Globalpost/GlobalPost)

Roundup: Philippine bourse slumps on fears over U.S. Fed tapering

MANILA, Dec. 10 (Xinhua) -- The Philippine stock market slipped below the 6,000-level over fears that the U.S. Federal Reserve would cut its stimulus program.

The bellwether Philippine Stock Exchange index dived by 2.04 percent, or 122.54 points, to 5,886.40, while the broader all- share index lost 1.85 percent, or 68.22 points, to 3,612.58.

Trading volume reached 633.93 million shares worth 7 billion pesos (159.06 million U.S. dollars) with 124 stocks declining, 31 advancing, and 36 were unchanged.

All six counters were down.

"At this point, nothing appears able to spur confidence in equities with the index sustaining further declines," analyst Justino Calaycay of Accord Capital Equities Corp. said in his daily stock market comment.

Calaycay said not even the 16,000-level of the Dow Jones could entice investors who are balancing the timing of the Fed's tapering on one hand and the oncoming budget talks on the other.

The analyst noted that he had already warned that a reduction in the U.S. stimulus program is inevitable, but he said the question on everyone's mind is when such reduction will be effected.

Nevertheless, 2TradeAsia.com said separately that the recent drop might attract some investors to the battered issues.

Stocks in the 30-company index were mostly down. These include Ayala Corp., Banco de Oro Unibank, Inc., and Megaworld Corp.

http://www.globalpost.com/dispatch/news/xinhua-news-agency/131210/roundup-philippine-bourse-slumps-fears-over-us-fed-tapering