By Arra B. Francia, Reporter
THE MAIN INDEX edged lower on Wednesday on profit taking amid expectations of slower global economic growth due to the US-China trade war.
The bellwether Philippine Stock Exchange index (PSEi) dropped 0.23% or 19.02 points to close at 7,989.65 yesterday, but managed to trim its losses in early trading. In contrast, the broader all-shares index added 0.08% or 4.04 points to 4,814.01.
“Market went on profit taking today after IMF (International Monetary Fund) revised global growth downwards as China growth slows due to trade war (with the US),” Diversified Securities, Inc. trader Aniceto K. Pangan said via text on Wednesday.
The IMF this week cut its global growth outlook by 0.2% to 3.5% in 2019 and by 0.1% to 3.5% in 2020. Among the factors for the weaker outlook is the trade war between the US and China, which has yet to be resolved.
In addition, the US is currently on the 32nd day of its partial government shutdown, as Congress refuses to submit to US President Donald J. Trump’s demand of funding a $5.7-billion wall that would keep immigrants out of the country.
Eagle Equities, Inc. Research Head Christopher John Mangun noted that the index could have gone lower if not for last-minute buying at the run-off period.
“Nonetheless, our market still did better than equities markets in the west and even here in Asia,” Mr. Mangun said in an e-mail.
Wall Street indices bled overnight. The Dow Jones Industrial Average plunged 1.22% or 301.87 points to close at 24,404.48. The S&P 500 index plummeted 1.42% or 37.81 points to 2,632.90, while the Nasdaq Composite index fell 1.91% or 136.87 points to 7,020.36.
Asian markets, meanwhile, ended mixed due to uncertainties over the US-China trade war.
All sectoral indices moved to negative territory back home, led by the mining and oil counter, which fell 0.89% or 78.13 points to 8,698.33.
Property shed 0.39% or 15.94 points to 3,985.28; industrials dipped 0.35% or 41.75 points to 11,618.43; holding firms retreated 0.3% or 24.13 points to 7,932.22; services went down 0.27% or 4.30 points to 1,546.41; while financials slipped 0.21% or 3.81 points to 1,805.43.
Some 1.22 billion issues valued at P6.66 billion switched hands, slightly higher than Tuesday’s P6.47-billion turnover.
Decliners swamped advancers, 120 to 77, while 57 names were unchanged.
Net foreign buying persisted for the fifth straight day at P219.66 million, albeit lower than the previous session’s P908.64 million.
“The market continues to trade sideways, and with the release of GDP numbers tomorrow, we may see it gain some momentum as better numbers are expected than the previous quarters,” Eagle Equities’ Mr. Mangun said on Wednesday.