Shares decline further as US-China trade woes deepen
SHARES slipped on Friday as investors focused on the US’ tariff hike on $200-billion worth of Chinese goods.
The bellwether Philippine Stock Exchange index (PSEi) shed 0.17% or 13.42 points to close at 7,742.20, continuing the bloodbath seen in the previous session after a disappointing Philippine first-quarter gross domestic product (GDP) reading.
The broader all shares index likewise dropped 0.34% or 16.59 points to 4,791.26.
“Philippine shares whipsawed between gains and losses today before settling the red with the trade tension at the center,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile phone message on Friday.
The United Sates increased tariffs to 25% from 10% on $200 billion worth of Chinese goods at 12:01AM ET on Friday amid ongoing trade negotiations in Washington. Beijing was reported to say that it “deeply regrets” the implementation of the tariff hikes, adding that it will take countermeasures.
Philstocks Financial, Inc. also attributed the PSEi’s decline to the tariff hike, saying in a market note on Friday: “US-China trade war escalation and dismal Q1 2019 GDP sent local stocks lower today.”
The country’s first quarter GDP growth was recorded at 5.6%, lower than the previous quarter’s 6.3% and the 6.5% recorded in the same period a year ago.
Despite the tariff hike, Chinese indices soared on Friday as investors went bargain hunting after several sessions in the red. The Shanghai Composite index jumped 3.1% or 88.26 points to 2,949.21 while the Shenzhen Component firmed up 4.03% or 358.08 points to 9,235.39.
The Hang Seng index also edged higher by 0.84% or 239.17 points to 28,550.24, while other Asian indices finished lower.
Wall Street indices meanwhile incurred losses overnight, as the Dow Jones Industrial Average retreated 0.54% or 138.97 points to 25,828.36. The S&P 500 index went down 0.3% or 8.70 points to 2,870.72, while the Nasdaq Composite index tumbled 0.41% or 32.73 points to 7,910.59.
Back home, four sectoral indices stayed in negative territory, including mining and oil which plunged 1.88% or 140.80 points to 7,325.28. Holding firms fell 0.92% or 68.36 points to 7,345.91; services slumped 0.66% or 10.75 points to 1,595.57, while property dipped 0.01% or 0.74 point to 4,118.
In contrast, financials jumped 1.17% or 20.27 points to 1,738.83 and industrials rose 0.2% or 23.92 points to 11,528.32.
Some 817.38 million issues switched hands valued at P7.55 billion, lower than Thursday’s P9.1-billion turnover.
Decliners outpaced advancers, 101 to 78, while 64 names were unchanged.
Foreign investors remained in net selling mode at P688.25 million, although lower than the previous session’s P1.63-billion net outflow. — Arra B. Francia
