Trade concerns weaken PH main equities gauge, peso

The negative sentiment in the equities market affected the peso, which closed the day’s trade at 50.76 to the dollar from its 50.445 finish on Thursday.(Pexels photo)

MANILA – Concerns over the trade tension between the US and China resulted in the risk-off sentiment and the negative close of the Philippines’ main equities index and the peso Friday.

The Philippine Stock Exchange index (PSEi) lost 1.99 percent, or 112.75 points, to 5,541.95 points.

All Shares contracted by 1.53 percent, or 52.04 points, to 3,356.61 points.

Most of the sectors also ended in the red, with Property posting the highest decline of 3.24 percent, followed by Holding Firms, 2.09 percent; Financials, 1.92 percent; Mining and Oil, 0.99 percent; and Industrial, 0.84 percent.

Only Services gained during the day after rising by 0.18 percent.

Volume totaled 660.43 million shares, amounting to PHP4.53 billion.

Losers led gainers at 103 to 70 while 46 shares were unchanged.

“Sino-US trade tension drove down the Philippine market today, and even continued improving oil prices did not help to neutralize the market movement,” said Luis Limlingan, Regina Capital Development Corp. head of sales.

Reports said US President Donald Trump does not want to “speak” with Chinese President Xi Jinping “right now” and warned that he could even cut ties with officials of the world’s second largest economy.

US authorities also said they were looking into Chinese companies listed with the New York Stock Exchange and Nasdaq that do not follow accounting policies.

Meanwhile, reports said Saudi Aramco cut sales to key buyers and the International Energy Agency (IEA) has cited improvement in the international oil market.

The negative sentiment in the equities market affected the peso, which closed the day’s trade at 50.76 to the dollar from its 50.445 finish on Thursday.

Its weakness showed early on when it opened the day at 50.46 from its 50.29 start in the previous session.
It traded between 50.76 and 50.46, bringing the day’s average to 50.588.

Volume increased to USD849.9 million from USD565.61 million a day ago.