Stocks dive further on geopolitical concerns
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.