Market volatility dampens share prices

The benchmark Philippine Stock Exchange index stayed in negative territory yesterday, closing 44.87 points lower at 7,719.18, while the broader All Shares index declined 20.35 points or 0.44 percent to end at 4,593.84.

Analysts said investors continue to stay on the sidelines on the back of a looming US Federal Reserve rate hike and possibly because of President Duterte’s declaration of a state of lawlessness after the Davao bombings.

But PSE president Hans Sicat said the declaration is just a small factor. He said the main factor is really because the market is volatile now.

“(The state of lawlessness) is really just a small factor,” Sicat said.

All sectors except for the financial and industrial counter ended in negative territory.

Total value turnover reached P7.69 billion. Breadth was negative as decliners outnumbered advancing stocks, 108 to 75 while 54 stocks were left unchanged.

Elsewhere in the region, however, Asian stocks rose after a US jobs report raised hopes the Federal Reserve may not necessarily raise rates this month and will instead do this in December.

Data showed that job gains slowed in most major industries in August and wages rose only slightly in the US.

Japan’s Nikkei 225, for instance, gained 0.7 percent to finish at 17,037.63, while South Korea’s Kospi increased 1.1 percent to 2,061.00.

Similarly, Hong Kong’s Hang Seng rose 1.6 percent to 23,645.90.