SHARES PLUNGED on Wednesday, tracking the negative performances of regional markets dragged by concerns on the trade war between the United States and China.
The bellwether Philippine Stock Exchange index (PSEi) gave up 0.94% or 68.20 points to close at 7,129.42 yesterday, extending the previous session’s decline. The broader all-shares index shed 0.49% or 21.53 points to 4,362.31.
“Philippine shares continued to be sold lower just as regional markets mostly ended lower on renewed fears regarding the trade wars plus growing concerns that the US economy may have peaked,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile message.
The Dow Jones Industrial Average fell 0.50% or 125.98 points to 25,191.43. The Nasdaq Composite index also dipped 0.42% or 31.09 points to 7,437.54, while the S&P 500 index slowed 0.55% or 15.19 points to 2,740.69.
Most Asian markets also saw another sell-off on Wednesday on fears of the impacts of the tariffs on American industrial and technology firms amid the US-China trade war.
“Aside from this is the China-US meeting wherein both presidents are expected to meet up late November at the G20 Summit,” Mr. Limlingan added.
US President Donald J. Trump and Chinese President Xi Jinping are scheduled to meet at the G20 Summit in Argentina next month, with the former’s officials saying that Beijing has yet to agree with its requests.
Meanwhile, P2P Trade Online Sales Associate Gabriel Jose F. Perez attributed the market’s decline to a heavier net foreign selling (NFS) figure for the day, which swelled to P700.05 million from P102.84 million on Tuesday.
“Today’s NFS print may have even come as quite of a surprise considering how the outflow looked like it was already starting to ease with the past few days having figures of around P80-P200 million only,” Mr. Perez said in an e-mail on Wednesday.
Services was the lone sectoral index that managed to eke out gains, adding 0.40% or 5.99 points to 1,480.03.
Financials led the day’s retreat, plummeting by 1.82% or 29.71 points to 1,602.52. Mining and oil followed with a 0.85% or 81.81-point drop, while industrials shed 0.82% or 88.44 points to 10,685.54. Property went down 0.73% or 25.93 points to 3,516.60 and holding firms slipped 0.67% or 46.87 points to 6,946.53.
Some 1.06 billion issues switched hands, resulting in a value turnover of P4.64 billion, slower than the previous session’s P5.14 billion. Decliners outpaced advancers, 112 to 74, while 45 names were unchanged.
P2P Trade’s Mr. Perez said investors will continue to look at how US markets perform overnight, also noting that San Miguel Food and Beverage, Inc. (SMFB) will be pricing its follow-on offering on Thursday, which may affect the PSEi’s performance.
SMFB plans to sell up to 522.96 million shares before the year ends, with a price range of P85 to P95. — Arra B. Francia