Stocks fell Tuesday as Britain’s shock decision to leave the EU continued to bring uncertainty to the global market.
The Philippine Stock Exchange Index lost 49.21 points, or 0.6 percent, to 7,666.69 on a value turnover of P5.1 billion. Losers beat gainers, 94 to 82, with 57 issues unchanged.
Philippine Long Distance Telephone Co., the biggest telecommunications company, dropped 1.4 percent to P2,050, while major builder Ayala Land Inc. declined 1.5 percent to P38.80.
GT Capital Holdings Inc. of tycoon Geroge Ty fell 1.6 percent to P1,446, while First Gen Corp. of the Lopez Group lost 2.6 percent to P24.65.
The rest of Asian markets, meanwhile, gained while the pound rose as traders began betting on a fresh round of stimulus to mitigate the effects of Britain’s shock decision to leave the EU.
Regional markets mostly closed higher after beginning the day deep in the red, as uncertainty over the vote—which many fear could precipitate the end of the United Kingdom and even the European Union—revived selling after Monday’s surprise rise in Asia.
Tokyo ended up 0.1 percent, having fallen two percent in the morning, while Seoul also reversed to finish 0.5 percent higher.
Shanghai recovered to end 0.6 percent higher, while there were healthy gains in Singapore, Wellington, Taipei, Jakarta and Bangkok.
Hong Kong was 0.6 percent down in the afternoon while Sydney gave up 0.7 percent, although both were improvements on early trade.
In early European trade London jumped 2.0 percent, Paris rallied 2.3 percent and Frankfurt climbed 2.1 percent.
A lack of haste among Britain’s leadership is adding to a sense of drift in the country, with Prime Minister David Cameron saying he will stand down in the autumn and hand responsibility for exiting the EU to his—as yet unknown—successor.
While Cameron does not want to trigger the process to remove Britain before he leaves, he is facing pressure from other EU leaders, ahead of a crucial Brussels summit Tuesday, to hurry the process up.
A slump in New York and European markets Monday as well as cuts to Britain’s credit rating by Standard & Poor’s and Fitch—making it more expensive to borrow cash in international markets—added to downward pressure. With AFP