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Bourse slips on trade war concerns

September 21, 2019

The stock market slipped from the 7,900 level on Friday as investors again expressed worries over escalating trade tensions between the United States and China.

The benchmark Philippine Stock Exchange index (PSEi) fell 0.51 percent or 40.21 points to 7,871.11, while the wider All Shares dipped 0.22 percent or 10.61 points to 4,772.35.

“The local market extended its losses today amid renewed worries over the US-China trade negotiations,” Philstocks Financial Inc. Japhet Tantiangco said.

The comment came after Hong Kong’s South China Morning Post newspaper quoted Michael Pillsbury, an informal adviser to US President Donald Trump, as saying Washington was ready to escalate the trade war if no agreement was reached soon.

Trump’s critics would be wrong to assume the president is “just bluffing” in the trade confrontation with Beijing, he said.

Another wave of US tariff increases is scheduled for October 1, with high-level US and Chinese officials also due to resume negotiations early next month.

“Adding to the downward pressure is the net foreign outflow today which recorded P1.065 billion,” Tantangco said.

For next week, Papa Securities sales associate Gabriel Jose Perez said the PSEi would be tracking the results of Bangko Sentral ng Pilipinas’ (BSP) monetary policy meeting on September 26.

“Consensus expects the central bank to cut [rates] by 25 bps (basis points),” he added.

The BSP trimmed key policy rates by 25 basis points in August, bringing the overnight reverse repurchase, repurchase and deposit rates to 4.25 percent, 4.75 percent and 3.75 percent, respectively.

In the US, the Nasdaq was up 0.07 percent, S&P ended flat and Dow Jones slid 0.19 percent.

Asian markets were mixed. Tokyo rose 0.16 percent, Shanghai climbed by 0.24 percent, Seoul added 0.54 percent and Singapore was up 0.25 percent.

Hong Kong dropped 0.13 percent, Jakarta fell 0.21 percent and Thailand shed 0.53 percent.

Back in Manila, all sectors dropped, except for holding firms and services, which rose by 0.28 percent and 0.20 percent, respectively.

Volume turnover stood at 2.69 billion amounting to P10.17 billion.

Losers led winners, 94-91, while 62 issues were unchanged.

WITH A REPORT FROM AFP

Credit belongs to : www.manilatimes.net

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