Overseas trade concerns weaken local markets

The Philippine Stock Exchange index (PSEi) shed 1.37 percent, or 101.44 points, to 7,332.17 points. (Shutterstock photo)

MANILA — Continued trade war concerns weighed heavily on the Philippines’ equities and the peso on Tuesday, with the latter ending the day at its nearly 13-year low against the US dollar.

The Philippine Stock Exchange index (PSEi) shed 1.37 percent, or 101.44 points, to 7,332.17 points.

Landbank market economist Guian Dumalagan said the main index finish is in line with its counterparts in the region “as global trade concerns and political dysfunction tested investor optimism.

”

He attributed the risk-off sentiment to reports that China has decided to call off trade talks with the US.

Another factor is the report on the possible removal of an official overseeing the investigation on allegations of Russian interference in the 2016 US presidential election, he said.

Investors decided to stay on the sidelines and monitor developments.

Thus, all the other counters tracked the PSEi, with the broader All Shares down by 0.81 percent, or 36.62 points, to 4,494.90 points.

Property led the sectors with a 2.40 percent decline and was followed by Financials, 1.

85 percent; Services, 0.91 percent; Holding Firms, 0.49 percent; Mining and Oil, 0.40 percent; and Industrial, 0.38 percent.

Volume was thin at 612.44 million shares amounting to PHP3.5 billion.
Losers led gainers at 99 to 81 while 55 shares were unchanged.

The peso also closed at 54.31 to
the dollar, weaker than its 54.23 finish Monday and weakest after the 54.425 on November 22, 2005.

A trader pointed this weakness to trade concerns as the world’s two largest economies continue to have tariff issues.

For the day, the Peso opened at 54.245, down from 54.12 a day ago.
Its opening level is the unit’s strongest for the day after dipping to 54.35, resulting in an average of 54.342.
Volume reached USD668.35 million, lower than the USD670.6 million a day ago.