PSEi retreats below 8000 on geopolitical tensions

The stock market retreated yesterday, closing again at below the 8,000 mark on geopolitical concerns, analysts said.

The benchmark Philippine Stock Exchange index shed 29.73 points, or 0.37 percent, to finish at 7,870.25 while the broader All Shares gauge lost 23.37 points, or 0.48 percent, to finish at 4,771.28.

Most sectoral indexes were down except for the property index.

Total value turnover was likewise thin, closing at P4.77 billion. Market breadth was negative, 130 to 68 while 49 issues were left unchanged.

Traders said market investors opted to stay out of the market amid the growing unease brought about by the escalating tensions between Western powers and Syria.

Over the weekend, Western powers launched missile attacks at the heart of Syria’s chemical weapons program, marking the biggest intervention by the US, France and Britain.

However, the assault is unlikely to put a stop to Syrian President Bashar al-Assad’s seven year war. Assad denounced the attack while US President Trump called it a success.

“Philippine markets started slow given the geopolitical tensions keeping markets in a waitand-see mode. US and key allies launched limited strikes vs Syria over the weekend. Despite the rhetoric heading into the strikes, Russia did not retaliate against US platforms and there was no broad escalation. The US and allies announced that this is a one-off action unless Syria uses chemical weapons as they were alleged to have previously done. ” said Luis Limlingan, managing director of Regina Capital.