Share prices plunge 12.3%; trading halted temporarily

By KRISTINE JANE R. LIU

Business World

The Philippine stock market saw one of its worst days yesterday as share prices fell by a record 12.3%, triggered by investor fears that a global recession is inevitable.

The plunge — the biggest one-day percentage drop since the bourse was unified — forced officials to temporarily halt trading, also a first for the Philippine Stock Exchange (PSE).

The "circuit breaker rule" was imposed after the main index fell by 10%. The 15-minute breather did little to prevent further drops as the main index closed at 1,713.8, down 239.7 points. It was the biggest one-day point drop since February 2007.

The total value of all 241 firms listed on the PSE was P7.98 trillion at the start of the year. As of yesterday this was down to P4.75 trillion.

"Basically this is investor concern over the income of the country’s financial institutions. The effect of the global situation ... is being considered and [investors] are worried about our banking sector," said Harry G. Liu, president of Summit Securities, Inc. Check for details...