October 10, 2019
TRADE talks between the United States and China this week continue to drag market sentiment sentiment, causing the stock market to dip again on Wednesday.
The benchmark Philippine Stock Exchange index (PSEi) dropped by 0.97 percent or 75.47 points to end at 7,681.25, while the wider All Shares fell 0.69 percent or 32.40 points to close at 4,655.99.
“It seems like the market’s still waiting on the results of the upcoming US-China trade talks, which would determine much of the movement in the immediate term,” Papa Securities sales associate Gabriel Jose Perez said.
The downbeat mood comes as investors fret over signs the global economy is slowing down, with the International Monetary Fund forecasting the weakest growth in a decade owing to long-running tariff disputes.
Days before high-level negotiations were due to resume, Washington announced restrictions on 28 Chinese entities over human rights violations in Xinjiang province and imposed visa restrictions on some officials.
Then Bloomberg News reported that unnamed Trump administration officials had said the White House was mulling over new measures to curtail US investment in that country.
AAA Equities head of research Christopher Mangun agreed with Perez, saying “investors are pessimistic as US-China trade talks are set to begin this week.”
He also said foreign investors fleeing the local market pulled the PSEi into the red. Net selling reached P1.87 billion on Wednesday.
On Wall Street, the Dow Jones, S&P 500 and Nasdaq slipped by 1.19 percent, 1.56 percent and 1.67 percent, respectively.
Asian markets mostly fell. Tokyo dropped 0.61 percent, Hong Kong slid 0.81 percent, Jakarta fell 0.27 percent, Singapore dipped 0.58 percent, Thailand lost 0.17 percent and Vietnam slumped 0.04 percent. In contrast, Shanghai climbed 0.39 percent and Seoul jumped 1.21 percent.
In Manila, all sectors ended in the red, with holding firms taking the biggest hit at 1.31 percent.
Volume turnover stood at 321.84 million amounting to P4.80 billion.
Losers outpaced winners, 114-60, while 58 issues were unchanged. AFP
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