By Denise A. Valdez, Reporter
THE MAIN INDEX slid on Wednesday as negative sentiments hound investors due to the uncertainty of the trade talks between United States and China.
The bellwether Philippine Stock Exchange index (PSEi) trimmed 14.08 points or 0.17% to close at 7,898.06 on Wednesday, while the broader all-shares index shed 12.32 points or 0.26% to 4,717.40.
“Philippine shares slipped back as upbeat macro data was overshadowed by disappointing retail earnings and doubts about a US-China trade deal,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message.
CNBC reported Tuesday that US President Donald Trump is threatening to impose higher tariffs on Chinese goods if the country fails to make a trade deal with China.
As a response, markets in the Asia Pacific declined on Wednesday. Japan’s Nikkei 225 and Topix indices lost 0.62% and 0.33%, respectively. Australia’s S&P/ASX 200 index dropped 1.35%; China’s Shanghai SE Composite index gave up 0.78%; and Hong Kong’s Hang Seng index fell 0.75%.
“The local market joined its regional peers on the decline following (Mr. Trump’s) tariff threats against Beijing. The outlook on the US-China negotiations is becoming dimmer and this is what’s been pulling the local bourse lately,” Senior Research Analyst Japhet Louis O. Tantiangco of Philstocks Financial, Inc. said in a text message.
He added that the weakening of the Philippine peso, which closed at P50.87 against the dollar on Wednesday, is another factor dragging the local market.
Papa Securities Corp. Sales Associate Gabriel Jose F. Perez cited the same reason, saying in an e-mail that “net foreign selling continued to plague the index.”
Foreign investors remained bearish on Wednesday, recording a net selling of P655.08 million at the close of trading. However, this is an improvement from Tuesday’s net outflows worth P1.03 billion.
Sectoral counters mostly declined. Mining and oil went down 119.98 points or 1.39% to 8,481.03; industrials dropped 47.48 points or 0.47% to 9,989.76; financials inched down by 6.01 points or 0.31% to 1,913; and holding firms lost 18.37 points or 0.23% to 7,788.62.
Meanwhile, property increased by 16.15 points or 0.39% to 4,091.78, while services went up 0.05 point to 1,549.62.
Value turnover fell to P4.13 billion from Tuesday’s P6.22 billion, with 1.73 billion issues changing hands.
Declining stocks outpaced advancing stocks, 106 against 72, while 52 closed unchanged.
“The index should continue to trade sideways in the near-term as we wait on the MSCI overhang to dissipate next week. Support would be at the 7,800 level, while resistance is at the 8,000 area,” Mr. Perez said.