PSEi slips anew on HK measure
Credit to Author: Tyrone Jasper C. Piad| Date: Thu, 28 Nov 2019 16:56:50 +0000
The stock market on Thursday lost the gains it secured the day before after tensions between the United States and China escalated anew over a measure supporting the pro-democracy movement in Hong Kong.
The benchmark Philippine Stock Exchange index (PSEi) dropped by 0.87 percent or 68.23 points to finish at 7,768.66, while the wider All Shares slid by 0.73 percent or 34.05 points to end at 4,650.95.
“Local shares were sold down ahead of the Thanksgiving holiday [on] Thursday and with concerns of growing tensions as [US] President [Donald] Trump signed [the] Hong Kong bill,” Regina Capital Development Corp. head of sales Luis Limlingan said.
Hopes that US-China talks would lead to the signing of a trade agreement sign were dashed anew after Trump on Wednesday put his name on the Hong Kong Human Rights and Democracy Act, which requires the president to annually review the city’s favorable trade status and threatens to revoke it if the territory’s freedoms are quashed.
China lashed out at the decision, calling it “extremely abominable” and threatened “firm countermeasures,” though it did not specify what they would be. Hong Kong’s government expressed “extreme regret” at the move.
The former British colony has been rocked by violent protests since March, when the Hong Kong government proposed an extradition bill that would have permitted the transfer of fugitives to mainland China. A huge majority of the territory’s inhabitants, who are wary of Beijing and its perceived efforts to increasingly limit their autonomy, opposed this measure.
Meanwhile, AAA Equities head of research Christopher Mangun said most investors stayed on the sidelines as the “general sentiment remains dull.”
“Investors may gain confidence if the main index can end the week above the 7,750-support level,” he added.
On Wall Street, the Dow Jones, S&P 500 and Nasdaq climbed by 0.15 percent, 0.42 percent and 0.66 percent, respectively.
Markets in Asia also plunged at news on the Hong Kong bill. Tokyo dipped by 0.12 percent,
Shanghai fell by 0.47 percent, Hong Kong shed 0.12 percent, Seoul slipped by 0.43 percent, Jakarta dipped by 0.86 percent and Bangkok slipped by 0.40 percent.
In Manila, all sectors fell except for services, which gained 0.28 percent.
Volume turnover stood at 668.52 million amounting to P5.44 billion.
Decliners led advancers, 116-64, while 52 issues were unchanged.
WITH A REPORT FROM AFP