Stock market down for a 6th day

THE stock market fell for a sixth consecutive trading day on Wednesday with investor sentiment dampened by geopolitical worries.

The benchmark Philippine Stock Exchange index (PSEi) fell back to the 7,500 level, losing 1.12 percent or 85.73 points to close at 7,560.47. The wider All Shares also dropped 0.87 percent or 40.46 points to finish at 4,612.

“The dip today can … be attributed to the price of oil in the world market … as the [US-imposed] sanctions on Venezuela renewed fears of tight supply,” Timson Securities, Inc. trader Jervin de Celis said.

“This may have influenced our market negatively since we are a net importer of oil and it may add further burden to our weaker currency and accelerating inflation,” he added.

“Our market is still trading on thin volume, which is an indication that investors are not yet willing to size up their exposure to our stocks.”

Crude prices, already under pressure from US President Donald Trump’s decision to scrap a nuclear deal with Iran, rose after Trump sanctioned Venezuela over a disputed presidential election.

First Grade Finance, Inc. Managing Director Astro del Castillo also blamed uncertainties over a US- China trade dispute and peace talks with North Korea.

“And then the higher oil prices continue to disappoint many investors especially in the region,” Del Castillo added.

“On the domestic front, same concerns, same worries. Inflation, the weaker peso adding to the burden of investors. Expect sideways movement ahead.”

All sectoral indices fell with holding firms down the most by 1.76 percent.

Over 1.8 billion issues valued P5.88 billion changed hands.

Losers led winners, 116 to 66, while 55 issues were unchanged.