PSEi drops fur­ther on lin­ger­ing over­seas con­cerns

Business World - - THE STOCK MARKET - By Arra B. Fran­cia Re­porter

THE MAIN IN­DEX suf­fered an­other sell- off on Tues­day, weighed down by lin­ger­ing con­cerns on the tensions sur­round­ing the United States and Rus­sia.

The 30- mem­ber Philip­pine Stock Ex­change in­dex ( PSEi) dropped 1.86% or 146.86 points to close at 7,723.39 yes­ter­day. The broader all-shares in­dex like­wise lost 1.57% or 75.32 points to 4,695.96.

“Philip­pine mar­kets were sold down due to the tensions de­vel­op­ing be­tween Rus­sia, US, and Syria. Traders weighed on week­end strikes in Syria and po­ten­tial for ad­di­tional US sanc­tions against Rus­sia,” Regina Cap­i­tal De­vel­op­ment Corp. Man­ag­ing Di­rec­tor Luis A. Lim­lin­gan said in a mo­bile phone mes­sage.

Sum­mit Se­cu­ri­ties, Inc. Harry G. Liu, mean­while, said that fund man­agers are cur­rently di­gest­ing the ef­fects of these geopo­lit­i­cal tensions to global mar­kets, not­ing that the im­pli­ca­tions of the trade war be­tween the US and China will be more cause for con­cern once the on­go­ing rift be­tween US and Rus­sia set­tle down.

“I pre­sume that world lead­ers and fund man­agers will di­gest what will hap­pen to the trade war, where will the bal­ance come in. Ev­ery­body’s still try­ing to fig­ure out what the ef­fects will be,” Mr. Liu said in a phone in­ter­view yes­ter­day.

The blood­bath trick­led down to all sec­toral coun­ters, with the fi­nan­cials counter drop­ping 2.26% or 45.82 points to 1,975.27. The min­ing and oil sec­tor shed 2.08% or 231.35 points to 10,864.71; hold­ing firms gave up 1.78% or 140.41 points to 7,726.81; ser­vices fell 1.76% or 28.54 points to 1,589.34; in­dus­tri­als went down 1.39% or 155.88 points to 11,052.50; while prop­erty de­clined 1.31% or 47.58 points to 3,567.38.

De­clin­ing stocks pre­vailed for the day at 161 is­sues ver­sus 57 that gained and 34 that re­mained un­moved.

Value turnover picked up, end­ing at P7.03 bil­lion against Mon­day’s P4.77 bil­lion, af­ter some 1.23 bil­lion is­sues switched hands.

For­eign in­vestors turned sell­ers, rev­ers­ing Mon­day’s P139.71- mil­lion net pur­chases for net for­eign out­flows of P453.85 mil­lion.

Sum­mit Se­cu­ri­ties’ Mr. Liu said the mar­ket is still look­ing for a sup­port level be­tween 7,500 and 7,700 that will hold in the medium term.

“We should see some im­prove­ments in the com­ing weeks... In­vestors are just adapt­ing a side­line at­ti­tude, they’re wait­ing for the right tim­ing to come in,” he added.

In con­trast, Wall Street re­gained mo­men­tum overnight, with the Dow Jones In­dus­trial Av­er­age climb­ing 0.87% or 212.90 points to 24,573.04. Nas­daq Com­pos­ite in­dex added 0.70% or 49.64 points to 7,156.29, while the S&P 500 also ended in the green with a gain of 0.81% or 21.54 points to 2,677.84.

Most Asian in­dices stayed in pos­i­tive ter­ri­tory on Tues­day, trekking de­vel­op­ments of its global coun­ter­parts.

Newspapers in English

Newspapers from Philippines

© PressReader. All rights reserved.