Market extends losses as US-China trade war erupts

The local stock market continued to retreat as threats of a trade war became a reality after President Trump unleashed the opening salvo in the US trade war against China.

Market investors are also still digesting the faster-than- expected 5.2 percent inflation in June.

The benchmark Philippine Stock Exchange index still ended in the red albeit not as bad as Thursday’s tailspin. The PSEi lost 46.86 points, or 0.64 percent, to finish at 7,186.71 while the broader All Shares index shed 20.28 points, or 0.46 percent, to end at 4,387.34.

Likewise, the sectoral indices were all mostly in the red although the industrial and services counters managed to penetrate positive territory.

Total value turnover likewise remained thin at 4.857 billion. Market breadth was negative, 127 to 65 in favor of decliners. Forty-five issues were left unchanged.

Traders said concerns about the trade war between the US and China added to the market slump.

Tariffs on $34 billion worth of Chinese goods kicked in yesterday, according to reports.

In response, China implemented retaliatory tariffs on some imports from the US.