Bourse sustains losing streak
Credit to Author: JORDEENE B. LAGARE| Date: Mon, 30 Sep 2019 16:24:07 +0000
THE stock market sustained its losing streak after ending the first trading session of the week in the negative territory.
The benchmark Philippine Stock Exchange (PSEi) declined by 0.51 percent or 40.15 points to settle at 7,779.07, while the wider All Shares dropped by 0.34 percent or 15.94 points to end at 4,712.87.
According to Philstocks Financial Inc., the escalating US-China trade war dragged the local market down.
“Most Asian equities markets ended lower today on the back of comments from US President Trump over the weekend, on the possibility of delisting Chinese firms from US stock markets,” AAA Equities Head of Research Christopher Mangun said.
Previously, it was reported that the Trump administration was considering the likelihood of Chinese companies being delisted from US stock exchanges.
The delisting of Chinese companies from US stock exchanges was part of a broader effort to limit US investment in Chinese companies, the report said.
Mangun said such move is expected to curb investments from Washington to Beijing.
The bourse’s performance mirrored those of its US counterparts, with the Dow Jones dropping 0.26 percent, S&P declining 0.53 percent, and Nasdaq slumping 1.13 percent.
In the region, Nikkei dived 0.56 percent while India tumbled 0.39 percent. But Hong Kong surged 0.53 percent and South Korea gained 0.64 percent.
Back in Manila, all sub-sectors were mixed, with property gaining 0.80 percent and holding firms incurring a hefty loss of 1.66 percent.
About 2 billion shares valued at P12.93 billion, changed hands. Losers surpassed winners, 125 to 71, while 52 issues remained unchanged.
The PSEi is seen to continue its decline in the coming days.
“Further movement in the next few days could be influenced by US markets given a lack of catalysts in the local scene,” Papa Securities Sales Associate Gabriel Jose Perez said.
“Trading volumes picked up slightly today as some investors repositioned themselves, as it was the last day of trading for the third quarter. However, the market is looking weaker and weaker by the day,” Mangun said.
The next major support level for the index is at 7,750 and whether this level is going to hold is the big question, he added.