Philippine stocks fell for a fourth day, sending the benchmark index to the lowest level since January, as capital outflows continue amid concern economic growth is weakening.
The Philippine Stock Exchange Index fell 1.4 percent to 7,379.5 at 10:46 a.m. in Manila on Tuesday, bound for the
lowest close since January 12. JG Summit Holdings Inc. and SM Prime Holdings Inc. led losses, declining at least 2.7 percent. International investors sold a net $11.8 million of shares on Monday, following six straight weekly outflows.
“Investors are looking for something to hold onto, to overcome the first-quarter GDP [gross domestic product] disappointment,” said Justino Calaycay, an analyst at Manila-based Accord Capital Equities Corp. “A big part of investor confidence has been lost because of weak GDP, and a weakening peso is eroding gains of international investors with exposure to the Philippines, fueling further foreign selling.”
The Philippine stock gauge has retreated 9.1 percent since climbing to a record 8,127.48 on April 10, heading for the 10-percent decline some investors define as a correction. The peso has dropped 1.5 percent in the same period.
The equity gauge sank 2.9 percent in the week ended May 29, the worst loss since December 2013, after government data showed first-quarter economic growth weakened to a three-year low, missing estimates. It trades at 18.1 times projected 12-months earnings, still the most expensive in Southeast Asia, while the MSCI Emerging Markets Index is valued at a multiple of 11.8.
Bloomberg News
