PSEi drops ahead of US-China trade talks
Credit to Author: Tyrone Jasper Piad| Date: Mon, 07 Oct 2019 16:49:47 +0000
INVESTORS cashed in for gains ahead of the trade negotiations between the United States and China that will take place this week.
The benchmark Philippine Stock Exchange index (PSEi) dropped by 0.28 percent or 21.38 points to finish at 7,683.22 while the wider All Shares barometer fell 0.20 percent or 9.43 points to end at 4,666.17.
“Profit-taking ahead of the US-China trade [talks] this week sent the local market down by 21.38 points,” Philstocks Financial Inc. said in a market comment.
There was some uneasiness after reports said China had cut back on the number of topics it is willing to discuss at this week’s top-level trade talks with the US, rekindling concerns about the chances of any agreement between the two countries.
After a string of below-par data last week that highlighted the impact of US President Donald Trump’s trade war on the key manufacturing and services sectors, Friday’s much-anticipated non-farm payrolls figures showed unemployment at a 50-year low in September.
For his part, Regina Capital Development Corp. head of sales Luis Limlingan said: “Philippine shares began the week on a slightly negative note, with fears of a recession lingering and enough evidence of a slowing economy to maintain market expectations for another Federal Reserve interest rate cut in late October.”
Meanwhile, brokerage firm 2Tradeasia noted the PSEi was dragged by SM Investments Corp., BDO Unibank Inc. and JG Summit Holdings Inc., which slipped by 1.52 percent, 2.44 percent and 1.14 percent, respectively.
Dow Jones, S&P 500 and Nasdaq surged by 1.42 percent, 1.42 percent and 1.40 percent, respectively.
In Asia, Seoul climbed by 0.05 percent, Singapore surged 0.69 percent and Thailand was up 0.59 percent.
Tokyo dropped 0.16 percent, Shanghai fell 0.92 percent, Hong Kong dipped 1.11 percent, Jakarta decreased by 1.06 percent and Vietnam slipped 0.46 percent.
In Manila, sectors were mixed. Services, mining and oil and property were up while the rest dropped.
Volume turnover stood at 712.03 million valued at P5.84 billion.
Decliners led advancers, 97-86, while 57 issues were unchanged.
WITH A REPORT FROM AFP