US recession fears pull down PH stocks

Manila—Most local stocks tumbled yesterday alongside global fears of another US recession but index losses were tempered by sustained investor appetite on mining stocks amid skyrocketing gold prices.

The main-share Philippine Stock Exchange lost 48.79 points or 1.12 percent to 4,291.11. Holding firms, financial, property and industrial counters were battered most by a gloomy economic outlook in developed markets particularly the US.

But even as the 4,300 level was broken down, mining/oil provided some relief to investors as its counter rose by 2.7 percent for this session.

A bleak trading in Wall Street on Friday set the tone for a gloomy opening for the week. There were 61 advancers which were beaten by 72 decliners while 37 stocks were unchanged. Value turnover was thin at P4.45 billion.

The index would have fallen deeper if not for the gains eked out by Lepanto “A” (open only to local investors) and “B” (open to both local and foreign) and index heavyweight PLDT.

Some non-index stocks also took the limelight, such as resort developer BHI and nickel miner ORE. Manila Mining and Nihao were also up and even landed among the day’s most actively traded stocks. Though not part of PSEi itself, gains by ORE, Manila Mining and Nihao helped boost the mining/oil sub-index.

BHI shares sizzled as it hinted of a joint venture in the works with a blue-chip company on a resort community in Cavite alongside a property deal with Korea’s largest time-share firm on a golf course and hotel development project. ORE, on the other hand, swung to profitability in the second quarter as it began the shipment of nickel ore to offshore buyers.  /inquirer