PSEi stays above 8,000 amid cautious trading
By Denise A. Valdez, Reporter
FICKLE trade negotiations between United States and China dragged the main index lower on Monday, but it managed to stay in 8,000 level at the close of trading.
The Philippine Stock Exchange index (PSEi) gave up 56.38 points or 0.69% to close at 8,009.38 on Monday, as the broader all-shares index shed 34.52 points or 0.71% to 4,789.28.
Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco attributed the decline to the renewed uncertainties in the US-China trade talks after US President Donald Trump did not agree to roll back the tariffs on goods coming from Beijing.
“Investors are worrying that this could derail the negotiations,” Mr. Tantiangco said in a text message.
Mr. Trump said on Friday he has not agreed to roll back the tariffs despite officials from both countries claiming earlier that such agreement would be part of the phase one trade deal. He eventually said on Saturday that the trade talks with China are moving “very nicely,” Reuters reported.
Regina Capital Development Corp. Head of Sales Luis A. Limlingan pointed to the same reason for the market’s decline. “Shares closed lower today as US markets close for Veteran’s Day Holiday and investors continue to stay on the edge of latest trade talk negotiations,” he said in a mobile message on Monday.
Most Asian markets dropped on Monday. Hong Kong’s Hang Seng index slumped 2.62%; China’s Shanghai SE Composite index lost 1.83%; and South Korea’s KOSPI index dropped 0.61%. Japan’s Nikkei 225 index also fell 0.26%, and Singapore’s Straits Times Index by 0.90%.
At the PSE, all sectoral indices ended in the red. Mining and oil plummeted 219.65 points or 2.41% to 8,872.96; property fell 47.58 points or 1.14% to 4,123.31; financials lost 17.79 points or 0.91% to 1,928.96; industrials gave up 44.03 points or 0.42% to 10,434.30; holding firms shed 28.62 points or 0.36% to 7,904.70; and services decreased 2.40 points or 0.15% to close the session at 1,549.56.
Value turnover went down to P5.39 billion from Friday’s P6.83 billion, with 827.87 million issues changing hands.
Stocks that declined on Monday beat those that improved, 107 against 77, while 47 ended flat.
Foreign investors remained bearish with net sales of P419.98 million, albeit lower than Friday’s net outflow worth P485.41 million.
“So far, the market is holding its ground above the 8,000 level buoyed by the third quarter earnings released and the latest GDP (gross domestic product) figures. Corporate earnings season is nearing the tail end. If the remaining corporate reports set to be released show robust and improving figures, then we may continue to see the market trade above 8,000,” Philstocks Financial’s Mr. Tantiangco said.
