By Arra B. Francia, Senior Reporter
LOCAL EQUITIES fell on Wednesday as investors continued to wait on the sidelines ahead of trade negotiations between the United States and China later this week.
The bellwether Philippine Stock Exchange index (PSEi) slumped 0.25% or 20.52 points to 8,013.57, managing to hold the 8,000 level even as it dropped to a low of 7,983.14 in midday trading.
The broader all-shares index likewise shed 0.23% or 11.49 points to 4,897.51.
“Trade war and global economic slowdown are the two factors that’s keeping our market from moving above 8,150. Although, the PSE index continues to stay above 8,000 hoping that there could be a good result between US and China trade talks next week,” Unicapital Securities, Inc. Technical Analyst Jeff See said via text.
US President Donald J. Trump and Chinese President Xi Jinping are expected to discuss their trade dispute in the upcoming G20 summit from June 28 to 29 in Japan.
The PSEi moved in tune with Wall Street, which was dampened by the Federal Reserve Chairman Jerome Powell’s comments that they are adopting a wait-and-see mode in implementing rate cuts.
With this, the Dow Jones Industrial Average retreated 0.67% or 179.32 points to 26,548.22. The S&P 500 index dropped 0.95% or 27.97 points to 2,917.38, while the Nasdaq Composite index slid 1.51% or 120.98 points to 7,884.72.
“The PSEi had a lackluster day following the dip of the S&P 500 and the Dow last night… Event to watch out for would be how US markets perform tonight as another downturn could dampen the PSEi again tomorrow,” Papa Securities Corp. Sales Associate Gabriel Jose F. Perez said in an e-mail on Wednesday.
Meanwhile, Asian markets ended mixed as investors also waited for the results of the US and Chinese presidents’ meeting at the G20 summit. Japan’s Nikkei 225 tumbled 0.51% or 107.22 points to 21,086.59. The Shanghai Composite also dipped 0.19% or 5.79 points to 2,976.28, while the Hang Seng index added 0.10% or 29.45 points to 28,215.43.
Locally, four sectoral indices moved to negative territory, led by holding firms which plunged 0.57% or 44.34 points to 7,632.51. Industrials retreated 0.36% or 43.65 points to 11,840.11; services slipped 0.21% or 3.6 points to 1,707.85; while financials declined 0.14% or 2.55 points to 1,738.88.
On the other hand, mining and oil firmed up 0.46% or 34.87 points to 7,582.58. Property also rose 0.21% or 9.22 points to 4,302.75.
Turnover climbed to P8.13 billion after some 2.25 billion issues switched hands, higher than Tuesday’s P6.58 billion.
Decliners trumped advancers, 108 to 86, while 56 names were unchanged.
Net foreign outflows increased to P573.63 million yesterday from the previous session’s P180.57 million.