Stocks fell for the second day, dragging down the benchmark index to its lowest level in 17 months, as global markets reflected the slump in oil prices.
The Philippine Stock Exchange index, the 30-company benchmark, shed 85 points, or 1.3 percent, to close at 6,735.01 Friday. It was the gauge’s lowest level, since settling at 6,730.96 on June 20, 2014. It was also down 6.9 percent since the start of the year.
The heavier index, representing all shares, also tumbled 38 points, or 1 percent, to finish at 3,894.86, on a value turnover of P6.7 billion. Losers outnumbered gainers, 111 to 49, while 50 issues were unchanged.
Only two of the 20 most active stocks ended in the green, led by property developer Ayala Land Inc., which climbed 2.6 percent to P35.50. Conglomerate JG Summit Holdings Inc. rose 2.2 percent to P72.
Chemical producer D&L Industries Inc. was the biggest loser among the most active stocks, as it fell 7.2 percent to P7.98. Conglomerate Aboitiz Equity Ventures Inc. dropped 4.7 percent to P54.90.
Meanwhile, most Asian markets sank Friday at the end of a painful week for global equities defined by an oil rout that analysts warn could continue for some time.
Crude prices extended losses and have now tanked more than 10 percent since last Friday when the Opec grouping decided against capping output despite an oversupply and anaemic global demand.
Dealers are also keeping tabs on next week’s Federal Reserve policy meeting, where it is expected to hike interest rates for the first time in nine years.
“It’s difficult for shares to move much ahead of the Federal Reserve meeting,” Hitoshi Asaoka, a senior strategist at Mizuho Trust & Banking Co. in Tokyo told Bloomberg News.
“Oil prices haven’t stabilized yet so we can easily enter a wait-and-see mood. I expect the market to continue to be unstable,” he said.
The Opec decision last week has sent oil to around seven-year lows, and with the global economy struggling, China’s growth subdued and the dollar tipped to strengthen further, the commodity is expected to remain beaten down until possibly 2017.
Shares in Hong Kong sank 0.9 percent in the afternoon—having fallen in the previous six sessions—with CNOOC and PetroChina leading energy firms lower.
On other markets Shanghai slipped 0.9 percent, Sydney was 0.2 percent lower and Seoul sank 0.2 percent.
In Shanghai, trading in Chinese conglomerate and Club Med owner Fosun International was suspended Friday as reports swirled that its billionaire chairman had become unreachable and could be under investigation.
Guo Guangchang, dubbed “China’s Warren Buffett”, had been out of contact since Thursday, respected business magazine Caixin reported.
It cited social media postings as saying police took Guo away at an airport in Shanghai, but it was not clear whether he was put under investigation himself or assisting an inquiry.
Authorities have launched wide-ranging probes into the financial sector following a market rout earlier this year when a debt-fuelled bubble—encouraged by officials—burst, wiping trillions of dollars off valuations.
Traders seemed to brush off gains in New York, which capped off three days of losses.
However, bargain-buying and a weaker yen helped Tokyo rally one percent by the break after three-straight losses that led the Nikkei to a one-month low.
The dollar edged up against its major rivals after suffering selling for most of the week, with the Fed meeting coming within a week and US monetary policy expected to be tightened.
The greenback bought 122 yen although it is still down from the levels above 123 yen seen Monday.
And the euro drifted to $1.0936 from above $1.10 in Asia Thursday although it has held most of the gains made after the European Central Bank last Thursday announced a stimulus revision that fell well short of expectations. With AFP, Bloomberg