Stocks decline before Christmas weekend

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Share prices declined before the long Christmas weekend as US markets weakened on continued worries over rates and recession.

The main index shed 35.91 points or 0.55 percent to close at 6,541.03 Friday, Dec. 23, as Conglomerates led the retreat while the Industrial and Services sectors managed to advance. Volume dropped to 1.9 billion shares worth P3.14 billion as losers beat gainers 94 to 72 with 46 unchanged.

“Philippine shares were sold off ahead of the long weekend as investors worried that overtightening from central banks worldwide could force the economy into a downturn,” said Regina Capital Development Corporation Managing Director Luis Limlingan. He added that, “On the local data front, the Philippines’ 11-month budget gap got trimmed by 7.2 percent year-on-year to P1.24 trillion on higher tax and non-tax collections during the reference period.”

Philstocks Financial Assistant Research Manager Claire Alviar said “The local bourse took some gains on the last trading day of the week. Negative cues from Wall Street also weighed on sentiment amid recession fears.” She noted that, “Many investors were seen on the sidelines amid weak market participation ahead of the long weekend.”

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