Phl, Asian stocks roil over Wall St, oil plunge

Philippine stocks plunged yesterday following the sharp drop in Asian shares after weak US economic data and a massive fall in oil prices stoked further worries about a global economic downturn.

The Philippine Stock Exchange index (PSEi) plunged 114.41 points to settle at 6,335.09, while the broader All Shares index finished also lower by 59.12 points or 1.60 percent to finish at 3,638.88.

“Concerns of China, slower global economic growth and the Fed continue to drive investors to the exits,” said Astro del Castillo, managing director of First Grade Finance Inc.

Del Castillo said some market players opted to sell their positions ahead of the announcement of China’s economic growth tomorrow.

“Market sentiment will depend on the results of China’s data,” Del Castillo said.

Crude prices faced fresh pressure after international sanctions against Iran were lifted over the weekend, allowing Tehran to return to an already over-supplied oil market.

Brent oil futures fell below $28 per barrel, touching their lowest level since 2003.

“Iran is now free to sell as much oil as it wants to whomever it likes at whatever price it can get,” said Richard Nephew, program director for Economic Statecraft, Sanctions and Energy Markets.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell to its lowest since October 2011 and was last down 0.5 percent.

Japan’s Nikkei tumbled as much as 2.8 percent to a one-year low. It has lost 20 percent from its peak hit in June, meeting a common definition of a bear market.