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Shares drop on uncertainties over US-China deal

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PSE BGC bell
BW FILE PHOTO

THE MAIN INDEX slipped on Tuesday as the local bourse mirrored the decline in Wall Street trading on Monday, which took cues from the uncertainties over the US-China trade agreement.

The 30-member Philippine Stock Exchange index (PSEi) shed 22.01 points or 0.27% to close at 7,855.18 on Tuesday, as the broader all shares index dipped 5.48 points or 0.11% to 4,681.20.

“The index traded in the red today upon the resumption of net foreign selling and following the decline in US markets last night,” Papa Securities Corp. Sales Associate Gabriel Jose F. Perez said in an e-mail on Tuesday.

US markets kept falling on Monday as the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite indices all gave up 0.96%, 0.86% and 1.12%, respectively.

“Global equities markets stumbled today on concerns that a ‘phase one’ deal between China and the US may never come into fruition,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail on Tuesday.

He noted current events abroad cast a shadow of doubt on the talks between the two economic giants, specifically China’s decision to ban US military ships and aircraft from visiting Hong Kong and US’ imposition of tariffs on Brazil’s and Argentina’s metal products.




Most Asian markets landed in red territory, too: Japan’s Nikkei 225 and Topix indices lost 0.64% and 0.45%, respectively. Hong Kong’s Hang Seng index fell 0.20%, South Korea’s Kospi index dipped 0.38% and Australia’s S&P/ASX 200 index declined 2.19%.

Back home, sectoral indices were divided. Industrials lost 169.40 points or 1.72% to end at 9,675.60; holding firms gave up 31.99 points or 0.41% to 7,748.07; and mining and oil lost 16.48 points or 0.21% to 7,779.26.

Meanwhile, property gained 20.26 points or 0.49% to 4,152.64; services added 2.09 points or 0.13% to 1,544; and financials went up 2.09 points or 0.11% to 1,880.14.

Value turnover on Tuesday was at P5.06 billion with 480.81 million issues changing hands, slipping from Monday’s P5.31 billion when 1.28 billion issues changed hands.

“The PSEi ended slightly lower after its big day [on Monday] on gloomy trading as most of the country was shut down due to the super typhoon,” Mr. Mangun said about Tuesday’s market performance.

Advancers outpaced decliners, 90 against 88, while 53 names ended unchanged.

Foreign investors returned to selling their holdings, recording a net outflow worth P155.94 million, a turnaround from Monday’s net buying of P359.27 million.

“Markets should still be dictated by foreign flows and US market movement in the coming days,” Papa Securities’ Mr. Perez said.

AAA Southeast Equities’ Mr. Mangun added the PSEi may keep getting weaker “as the general sentiment abroad sours on the lack of progress on a trade deal and more tariffs on other countries.” — Denise A. Valdez









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