US-China dispute weakens PH stocks, peso

After a three-day rally, the main equities gauge declined by 1.17 percent, or 65.30 points, to 5,539.19 points. (Pexels photo)

MANILA – Trade concerns between the US and China again worried investors resulting in the negative close of the Philippine Stock Exchange index (PSEi) and the sideways movement of the peso Friday.

After a three-day rally, the main equities gauge declined by 1.17 percent, or 65.30 points, to 5,539.19 points.

All the other counters finished on the red, with the All Shares down by 0.74 percent, or 24.98 points, to 3,349.98 points.

Financials led the sectors after it slipped by 1.85 percent and was trailed by the Mining and Oil, 1.42 percent; Property, 1.26 percent; Holding Firms, 0.92 percent; Services, 0.68 percent; and Industrial, 0.58 percent.

Volume totaled to 501.94 million shares amounting to PHP4.03 billion.

Losers surpassed gainers at 125 to 49 while 44 shares were unchanged.

“Philippine markets closed lower ahead of the long weekend and rising Sino-US tensions” said Luis Limlingan, Regina Capital Development Corporation head of sales.

Malacanang has declared May 25 this year as a regular holiday due to the culmination of the Fasting of Ramadan or the Eid’l Fitr.

Aside from the trade rift, the US and China are now having issues due to the coronavirus disease, with the former claiming that the latter is not transparent on the extent of the virus outbreak in China.

With risk-off sentiment up, the peso ended the week at 50.7 from 50.61 close a day ago.

It opened the day at 50.73 from 50.59 Thursday.

It traded between 50.8 and 50.7, resulting in an average of 50.74.

Volume totaled to USD675.1 million, lower than the USD778.6 million a day ago.