Stocks continue to fall on global market weakness

Philippine stocks continued from last week’s losing streak as global markets are nervous that the arrest of a Huawei executive in Canada could worsen tensions between the US and China.

The Philippine Stock Exchange index (PSEi) fell 112.85 points, or 1.51 percent, to close at 7,348.21 as share prices dropped across the board, led by Holding Firms which was among the sectors that posted the most gains during the last market rally. A total of 14.84 billion shares valued at 12.26 billion was traded. Decliners swamped advancers, 134-59, with 43 issues unchanged.

“Equities markets were down all Asia including here in the PSE as worries that a rise in tensions between Washington and Beijing could ruin the chances of a trade deal. Markets in the west and Europe are seen to follow suit,” said Eagle Equities Head of Research Christopher Mangun.

Regina Capital Development Corporation Managing Director Luis Limlingan said “Philippines shares fell along with the rest of the region after Canada refused bail to detained Huawei CFO and summoning the US ambassador, concluding what has been a wild few trading days for all markets in general.”

Limlingan said “a weak jobs data in the US added to the slowing pressure amid a trade tension,” while adding further to local selling pressure, “OPEC’s decision to cut production by 1.2m barrels a day caught the market by surprise.”

“However, from a technical standpoint, this is a healthy pullback from the rally that we have seen in the last three weeks,” said Mangun. (JAL)