July 17, 2019
THE stock market succumbed to profit-taking on Tuesday, but remained in the bull market territory, with investor sentiment dented anew by renewed tensions between the United States and China.
The benchmark Philippine Stock Exchange index (PSEi) dropped by 1.22 percent or 101.72 points to close at 8,263.57, while the wider All Shares declined by 0.61 percent or 30.97 points to finish at 5,012.99.
Regina Capital Development Corp. head of sales Luis Limlingan said market players sold off positions after tensions between Washington and Beijing escalated over the latter’s plan to sanction US companies such as General Dynamics, Honeywell and Raytheon following reports that they would sell weapons worth $2.2 billion to Taiwan.
China considers the island-nation as a regenade province, and thus, part of its territory.
The planned sale coincides with Taiwan President Tsai Ing-wen’s visit to the United States as she prepares to seek support from allied countries.
In a separate comment, AAA Southeast Equities Inc. research head Christopher Mangun blamed losses on investors cashing in on gains following Monday’s huge rally.
“Today’s (Tuesday) retreat is a healthy pullback after the massive gains that we saw (on Monday)….” Mangun said. “As long as the PSEi stays above 8,150, there should be nothing to worry about.”
“With [companies’] second-quarter earnings out soon, we may see it challenge the next resistance at 8,550,” he said.
In the US, the Dow Jones rose 0.10 percent, the S&P 500 inched up 0.02 percent, and the Nasdaq gained 0.17 percent.
Asian counterparts were mixed, as Tokyo dropped 0.69 percent, Shanghai slipped 0.16 percent, Jakarta decreased 0.35 percent, and Bangkok was down 0.21 percent.
In contrast, Hong Kong inched up 0.11 percent, Seoul grew 0.45 percent and Singapore increased 0.27 percent.
In Manila, sectoral results were mixed, with the financials and mining and oil the only gainers, up 0.26 percent and 3.70 percent, respectively.
More than 1.21 billion issues were traded valued at P10.5 billion.
Winners led losers, 121 to 85, while 48 issues were unchanged.
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