PSEi sinks below 5,000 level anew on euro worries
MANILA, Philippines - Philippine shares recorded their biggest one-day drop since September, as Asian markets sank on concerns over a deepening euro zone crisis.
The Philippine Stock Exchange index (PSEi) once again slid below the 5,000 level, as it dropped 2.7% to 4,879 on Friday. The all-share index fell by 2.05%, while all the sub-indices were in the red.
Shares of SM fell by 3.3%, while Ayala Corp.shed 3.9% and Metro Pacific by 3.4%.
Philex Petroleum bucked the downtrend, gaining 1.5%, after its chairman Manuel V. Pangilinan announced it will stick to its schedule to drill two wells in Recto Bank between now and next year.
The PSEi suffered a 5.4% loss for the week, its worst weekly loss since September and the second-worst performer in the region, following Vietnam, which posted a weekly loss of 9.4%, its worst in a year.
Sentiment in the region was expected to remain weak but low valuations, particularly for Malaysian companies, could offer investors a longer-term buying opportunity, said Bharat Joshi, a fund manager for Aberdeen Asset Management in Kuala Lumpur.
"It's still very uncertain and I think markets will remain very volatile," he told Reuters.
Meanwhile, the Philippine peso closed at P43.25 to the U.S. dollar on Friday, losing P0.32 from P42.925 amid euro zone jitters. This was the peso's lowest level since it closed P43.275 per dollar on January 20 this year. - With ANC, Reuters