Stocks dive fur­ther on geopo­lit­i­cal con­cerns

The Philippine Star - - BUSINESS - By IRIS GON­ZA­LES

Share prices con­tin­ued to nose­dive yes­ter­day as in­vestors, spooked by geopo­lit­i­cal con­cerns, opted to re­main on a wait and see stance, an­a­lysts said.

The bench­mark Philip­pine Stock Ex­change in­dex drifted even lower by 1.87 per­cent, or 146.86 points, to fin­ish at 7,723.39, while the broader All Shares in­dex de­clined 1.58 per­cent, or 75.32 points, to close at 4,695.96.

All coun­ters were also sig­nif­i­cantly down yes­ter­day led by the fi­nan­cials and min­ing and oil in­dexes.

Traders said Philip­pine mar­kets were sold down due to lin­ger­ing con­cerns be­tween West­ern pow­ers and Syria.

The US, France, and Britain launched their at­tacks on Syria on Satur­day fol­low­ing Syria’s use of chem­i­cal weapons.

It marks the big­gest in­ter­ven­tion by West­ern pow­ers.

“Philip­pine mar­kets were sold down due to the tensions de­vel­op­ing be­tween Rus­sia, US and Syria. Traders weighed week­end strikes in Syria and po­ten­tial for ad­di­tional US sanc­tions against Rus­sia,” said Luis Lim­lin­gan of Regina Cap­i­tal.

In ad­di­tion, he said, key Chi­nese gross do­mes­tic prod­uct data was be­ing watched as in­vestors con­tinue to look for sta­bil­ity in the Chi­nese econ­omy.

Mean­while, a grad­ual re­turn of risk ap­petite lifted world shares on Tues­day, while there were mile­stones aplenty as ster­ling hit a postBrexit high and US sanc­tions on Rus­sia drove alu­minum prices to a seven-year peak.

Chi­nese data that pro­vided a bit of some­thing for every­one kept Asia largely in check overnight, but Eu­rope started well with only Lon­don’s FTSE lag­ging as the pound’s power weighed on its big ex­porters.

There were more signs of China open­ing up its econ­omy too and a stead­ier Rus­sian rou­ble showed in­vestors were also grad­u­ally shift­ing at­ten­tion away from Syria tensions back to cor­po­rate earn­ings and pos­si­ble in­ter­est rate moves.

Stocks in Shang­hai closed near a one-year low, as a US move to ban Amer­i­can com­pa­nies from sell­ing com­po­nents to Chi­nese tele­com equip­ment maker ZTE Corp. hit tech stocks.

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