Strong US jobs data dampen PSEi

Credit to Author: ANGELICA BALLESTEROS, TMT| Date: Mon, 08 Jul 2019 16:17:29 +0000

THE stock market fell back to the 8,000 level on Monday, joining a global rout, as investor sentiment dampened hopes of a Federal Reserve rate cut.

The benchmark Philippine Stock Exchange index (PSEi) dropped by 0.82 percent or 66.42 points to close at 8,051.52, while the broader All Shares declined by 0.65 percent or 32.21 points to finish at 4,913.47.

AAA Southeast Equities Inc. research head Christopher Mangun said the local market tracked a global decline after US jobs came in stronger than expected.

“Most of Asia was down today (Monday) after [a] stronger-than-expected US jobs report came in over the weekend, which weakens the case for a massive rate cut from the Federal Reserve this month,” he said.

P2P Trade Online sales associate Gabriel Jose Perez agreed, saying the weakness “may have come from strong US jobs data last Friday, given the upcoming Fed meeting later this month, where the market is already expecting at least a 25-basis point cut.”

The US economy in June added 224,000 jobs, bucking expectations of a drag on jobs due to business uncertainties over trade tensions between the United States and China. The number showed a significant jump from May’s 75,000.

“Market movement for tomorrow could be dictated by how US markets move tonight, in response to further moves from the aforementioned jobs data. Support for the PSEi is at the 8,000 mark, while resistance remains at the recent high of 8,139,” Perez said.

In the region, Tokyo declined by 0.98 percent, Shanghai fell 2.58 percent, Hong Kong dropped 1.54 percent, Seoul plunged 2.20 percent, Jakarta lost 0.34 percent, Singapore decreased 1.12 percent. Only Bangkok finished firmer, up 0.04 percent.

In Manila, most sectoral results were down except for mining and oil, up 0.39 percent.

More than 949 million issues were traded valued at P5.6 billion.

Losers led winners, 119 to 74, while 50 issues were unchanged.

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