MS 30th Anniversary XXX

Stocks fall; Petron, Security Bank gain

Stocks fell for the second day, as investors took profit on concerns valuations rose to an all-time high and as regional markets traded lower following a slowdown in US factory production. The Philippine Stock Exchange index, the 30-company benchmark, sank 91 points, or 1.3 percent to close at 6,748.43 on Tuesday, the biggest percentage loss in Asia. The index recorded its sharpest drop since March 19 as Bank of the Philippine Islands, the nation’s largest lender by market value, slumped 4.1 percent to P104.50. SM Investments Corp., the nation’s biggest company by market value, declined 1.4 percent to P1,130. The benchmark index rose to a record on March 27 after Fitch Ratings gave the Southeast Asian nation its first investment-grade debt rating, driving valuations to 19.7 times projected 12-month earnings, the highest based on data compiled by Bloomberg going back to 2006. The multiple was at 19.4 times Tuesday. The index fell 0.1 percent on Monday, as stocks resumed trading after holidays on March 28 and 29. “It’s primarily profit-taking,” Allan Yu, who helps manage about $11 billion at Metropolitan Bank & Trust Co., said by phone. “Investors are selling following the news on the investment-grade status. Valuation is also a bit high, so the market is taking a breather.” The heavier index, representing all shares, also shed 41 points, or 1 percent, to settle at 4,195.76, as losers outnumbered gainers, 97 to 56, with 41 issues unchanged.  Value turnover amounted to P7.5 billion. Only two of the 20 heavily traded stocks closed higher Tuesday.  Petron Corp. rose 1 percent to P14.54 while Security Bank Corp. gained 0.8 percent to P186. Meanwhile, a slowdown in US factory production sent Asian stock markets lower Tuesday.  US manufacturing expanded more slowly in March than February, the Institute for Supply Management said Monday, held back by weaker growth in production and new orders. Japan’s Nikkei also slipped as the yen rose against the dollar.  Japan’s Nikkei 225 index fell 0.8 percent to 12,040.10 as the yen’s recent weakness reversed course. A stronger currency makes products sold abroad more expensive, a hardship for Japan’s export-dependent economy. Analysts said, however, that the new government in Japan, with its new plan of attack to right the country’s economy, has lifted business optimism. A survey released by the Bank of Japan on Monday showed an improvement in business sentiment, although it was smaller than expected. “The economy is improving, albeit slowly, and the mood has been lifted by the assertive and coordinated economic plan of the new government,” Moody’s Analytics said in a market commentary. With Bloomberg, AP
COMMENT DISCLAIMER: Reader comments posted on this Web site are not in any way endorsed by The Standard. Comments are views by readers who exercise their right to free expression and they do not necessarily represent or reflect the position or viewpoint of While reserving this publication’s right to delete comments that are deemed offensive, indecent or inconsistent with The Standard editorial standards, The Standard may not be held liable for any false information posted by readers in this comments section.