Sustained trade fears drag market to 7,770
Credit to Author: ANGELICA BALLESTEROS, TMT| Date: Tue, 06 Aug 2019 17:00:02 +0000
THE stock market fell for a second day on Tuesday, joining a global decline, as investor sentiment was hurt anew by the trade war between the United States and China.
The bellwether Philippine Stock Exchange index (PSEi) dropped by 1.56 percent or 123.27 points to close at 7,766.75. The wider All Shares declined by 1.19 percent or 57.20 points to finish at 4,763.91.
“Stocks suffered one of their biggest declines of 2019 as China allowed its currency to fall to a more-than-10-year low versus the dollar,” Regina Capital Development Corp. head of sales Luis Limlingan said.
This has prompted the US Treasury Department on Monday to name China as a “currency manipulator,” a move that was seen denting anew the world’s two largest economies’ trade negotiations.
Locally, the peso dropped by 16 centavos to P51.955 versus the P51.79 finish on Monday.
The local market traded in line with its global counterparts. Wall Street opened Monday on a weaker note, with the Dow Jones dropping 2.9 percent, the S&P 500 declining 2.98 percent, and the Nasdaq plunging by 3.47 percent.
In the region, Tokyo dropped 0.65 percent, Shanghai declined 1.56 percent, Hong Kong decreased 0.67 percent, Seoul fell 1.51 percent, Jakarta shed 0.75 percent, and Singapore slipped 0.68 percent.
Only Bangkok finished firmer, up 0.26 percent.
In Manila, all sectoral results ended lower, with the mining and oil down the most by 2.02 percent.
More than 1.39 billion issues were traded, valued at P9.7 billion.
Losers led winners, 165 to 47, while 37 issues were unchanged.