Index eases as new NoKor bomb threat spooks investors

Share prices retreated yesterday after North Korea said it might test a hydrogen bomb in the Pacific Ocean, spooking most investors who decided to stay on the sidelines.

After piercing the 8,300 mark on Thursday, the benchmark Philippine Stock Exchange index (PSEi) declined 5.59 points to close at 8,281.27, while the broader All Shares gauge lost 6.61 points, or 0.13 percent, to end at 4,878.39.

Most counters ended in the red. Total value turnover was likewise thin at P6.15 billion. Market breadth was negative as decliners outpaced gainers — 109 to 93 while 47 issues were left unchanged.

Traders said the market was bound to correct after soaring to all time high last week as it continued to wait for sustainable catalysts such as the passage of the Duterte administration’s tax reform package.

Analysts said fresh threats from North Korea added to the jitters. North Korea hinted that it might test a hydrogen bomb over the Pacific Ocean.

In particular, North Korea’s foreign minister, Ri Yong Ho warned on Thursday that Pyongyang could test a powerful nuclear weapon over the Pacific Ocean. This would be in response to US President Donald Trump’s threats of military action, Ri said.