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Philippine stock index plummets 12.3 percent

Philippine stock index plummets 12.3 percent

Philippine stocks plummeted Monday with steep losses triggering a circuit-breaker that automatically halted trading for 15 minutes.
The Stock Exchange index plunged 239.66 points, or 12.3 percent, to 1,713.83 points, the lowest close since September 2004 and the biggest one-day drop since February 2007.
Decliners outnumbers gainers 123 to five, with 13 stocks unchanged.
The trading circuit-breaker, which is automatically triggered when the index drops more than 10 percent, was activated at 11:23 a.m. Trade resumed 15 minutes later.
Grace Cerdena of 2TradeAsia.com said the drop was caused by "big fund players" withdrawing investments to get cash and meet redemptions at home.
"This is the loss of confidence in the market," said Emmanuel Soller, broker at EquitiWorld Securities Inc. "Our fundamentals were ignored, we followed the U.S. But I believe there was an overreaction by investors."
Contributing to the panic, Banco de Oro Unibank Inc., the country's second-largest bank, reported a net loss of 1.3 billion pesos ($26.8 million) in the third quarter, caused mainly by its exposure to collapsed U.S. investment bank Lehman Brothers Holdings Inc.


Updated : 2021-06-13 21:40 GMT+08:00