Phl stocks tumble on concerns over US economy

Asian stocks including the Philippines tumbled yesterday after US Federal Reserve chairman Ben Bernanke gave no hint of immediate action to jump-start growth in the world’s No. 1 economy.

Bernanke avoided sending any signals Thursday in an appearance before members of the US Congress about what the Fed might do in response to a slowdown in hiring. The 69,000 jobs created in May was the fewest in a year.

The Philippine Stock Exchange index (PSEi) gave up 28.88 points to settle at 4,994.07. Total volume turnover reached 1.26 billion shares worth P4.18 billion. Market breadth was negative with losers outnumbering gainers 101 to 53 while 41 issues unchanged.

Most sectoral indices sank and closed in negative territory, led by property that lost 0.99 percent or 17.98 points to 1,790.82. Financials shed 0.98 percent or 12.27 points to 1,233.46, while services declined by 0.54 percent or 8.95 points to 1,639.49.

Holding firms dropped by 0.38 percent or 16.46 points to 4,335.18, while industrial fell by 0.16 percent or 12.09 points to 7,729.11.

Mining and oil, meanwhile, managed to defy the market’s downturn and closed higher, adding 1.34 percent or 321.92 points to 24,419.14.

Francis Lun, managing director of Lyncean Holdings in Hong Kong said markets were “slightly disappointed” that Bernanke had not said the Fed would extend its Treasury bondbuying program, known as quantitative easing.

The program injects money into the financial system, lowering interest rates to spur lending and growth.

Japan’s Nikkei 225 index fell two percent to 8,459.26. South Korea’s Kospi dropped 0.6 percent to 1,837.19. Australia’s S&P/ASX 200 lost 1.1 percent to 4,062.90. Hong Kong’s Hang Seng Index fell 0.4 percent to 18,500.

Benchmarks in Singapore, Taiwan, Indonesia and New Zealand also fell. Mainland Chinese shares moved higher by midday.