STOCKS failed to sustain their momentum on Tuesday on last-minute profit taking due to developments in the US-China trade war.
The Philippine Stock Exchange index (PSEi) lost 1.21% or 101.72 points to finish at 8,263.57 yesterday. The all-shares index also gave up 0.61% or 30.97 points to close at 5,012.99.
“The local market succumbed to last-minute profit taking on Sino-US trade sanction news headlining the market. Treasury Secretary Steven Mnuchin said he and Trade Representative Robert Lighthizer expect to speak by phone with Chinese officials this week about continuing negotiations,” Luis A. Limlingan, head of sales of Regina Capital Development Corp., said in a mobile message.
Mr. Mnuchin on Monday said he expects to have another telephone call with Chinese officials this week as part of resumed discussions about a trade agreement.
US President Donald Trump and Chinese President Xi Jinping last month agreed to another truce in the year-long trade spat between the world’s two largest economies.
“Separately, China may sanction firms like General Dynamics, Honeywell and Raytheon if the US sells weapons to Taiwan. The People’s Daily newspaper said their non-defense businesses in China may be boycotted in an article circulated on WeChat,” Mr. Limlingan said.
China’s government and Chinese companies will cut business ties with US firms selling arms to Taiwan, China’s Foreign Ministry said on Monday, declining to give details of the sanctions in a move likely to worsen already poor ties with Washington.
Last week, the Pentagon said the US State department had approved the sale of the weapons requested by Taiwan, including 108 General Dynamics Corp. M1A2T Abrams tanks and 250 Stinger missiles, which are manufactured by Raytheon.
The latest deal involves $2.2 billion worth of tanks, missiles and related equipment for Taiwan.
On Wall Street, The Dow Jones Industrial Average rose 27.13 points or 0.1% to 27,359.16; the S&P 500 gained 0.53 point or 0.02% to 3,014.30; and the Nasdaq Composite added 14.04 points or 0.17% to 8,258.19.
Back home, most sectors ended lower led by services, which went down 1.9% or 32.69 points to 1,680.33. Property lost 1.65% or 74.38 points to end at 4,432.91; industrials declined by 1.21% or 145.92 points to 11,861.92; and holding firms gave up 0.86% or 68.97 points to 7,947.78.
On the other hand, mining and oil gained 3.69% or 277.90 points to close at 7,794.27, while financials added 0.26% or 4.83 points to 1,854.05.
Value turnover climbed to P10.49 billion yesterday as 1.21 billion shares changed hands, higher than Monday’s P8.51 billion.
Advancers outnumbered decliners, 121 to 85, while 48 names ended flat.
Net foreign buying also rose to P1.18 billion on Tuesday from the previous session’s P1.04 billion. — V.M.P. Galang with Reuters