Stocks tumbled Friday, as the third-quarter growth of 6 percent fell below investors’ expectation, while falling Chinese industrial profits fueled concern the world’s second-largest economy was struggling to bounce back.
The Philippine Stock Exchange index, the 30-company benchmark, lost 136 points, or 1.9 percent, to close at 6,927.07 Friday. The gauge was also down 4.2 percent since the start of the year.
The heavier index, representing all shares, dropped 59 points, or 1.5 percent, to settle at 3,996,91, on a value turnover of P16.4 billion.
Losers outnumbered gainers, 111 to 60, while 45 issues were unchanged.
Only three of the 20 most active stocks ended in the green, led by property developer Robinsons Land Corp., which rose 0.5 percent to P30.15. Globe Telecom Inc. gained 0.3 percent to P2,000, while rival Philippine Long Distance Telephone Co. added 0.1 percent to close at P2,050.
Conglomerate JG Summit Holdings Inc. of tycoon John Gokongwei declined 4 percent to P70.75, while SM Investments Corp. of tycoon Henry Sy also fell 4 percent to P845.
Meanwhile, China’s economic slowdown has eroded investor confidence in Asian equity markets this year as a slump in manufacturing and commodity-intensive industries overshadowed government efforts to support growth.
Odds of a Federal Reserve interest-rate increase in December are holding above 70 percent even as anticipation builds that the European Central Bank may surprise analysts with the size of its stimulus next week.
“Concern over the Chinese economic slowdown will continue to weigh on the financial markets, especially those of developing countries,” said Win Udomrachtavanich, the Bangkok- based chief executive officer at One Asset Management Ltd., which oversees about $3.5 billion. “Most investors are reluctant to take any big positions before the Fed rate decision next month.”
In Japan, Tokyo shares closed lower in quiet trade Friday as profit-taking set in and tepid Japanese data aggravated worries about the health of the world’s number three economy.
A key inflation gauge showed Japan’s consumer prices fell again in October from a year ago, while spending by households also dropped in a double blow for Prime Minister Shinzo Abe’s high-profile growth blitz, dubbed Abenomics.
The weak figures came despite signs of a tight labour market, with the headline unemployment rate at a two-decade low of 3.1 percent, down from 3.4 percent in September. With Bloomberg, AFP