RP stocks fall 2% after Wall St plunge


Posted at Jun 27 2008 01:25 PM | Updated as of Jun 27 2008 09:25 PM

Stocks retreated on Friday as investors, taking their cue from Wall Street's tumble overnight, unloaded their holdings following another spike in world oil prices.

Analysts said investors have been worried about high fuel prices crimping consumer spending, thus, putting dent on companies' earnings.

"The market started weak because of Wall Street's plunge after oil prices hit a record high again yesterday," said Harry Liu, president of Summit Securities.

"The spike triggered concerns about rising inflation. The problem is not just local, but global," he added.

Oil surged above $140 a barrel before settling at $139.64 at New York trading on Thursday.

This, coupled with a downgrade in ratings on US investment banks, sent the Dow Jones industrial average down 360 points to a 21-month low of 11,453.42.

At home, the composite index fell 55.33 points or 2.2 percent to 2,466.28.

The broader all-share index lost 29.51 points or 1.8 percent at 1,570.20.

Losers whipped gainers, 96 to 23, while 26 stocks were unchanged.

A total of 2.24 billion shares worth P7.2 billion were traded.

Market heavyweight Philippine Long Distance Telephone Co. dropped P25.00 or 1.03 percent to P2,395.00.

Ayala Corp., the country's biggest conglomerate, plunged P15.00 or 5.5 percent to P260.00 after it announced it was selling roughly a 3-percent stake in unit Globe Telecom Inc. to Singapore Telecommunications Ltd., Southeast Asia's largest telecommunications firm.

Ayala said it would sell 3.8 million common shares in Globe for P1,210 each or a total of P4.6 billion. Globe closed down P5.00 or 0.42 percent at P1,180.00.

Property giant Ayala Land Inc. fell P0.20 or 2 percent to P9.60.