Foreign outflows send PSEi down
Credit to Author: Tyrone Jasper C. Piad| Date: Mon, 16 Dec 2019 16:55:47 +0000
Investors fled the local stock exchange after the United States and China announced that a partial trade deal has been concluded, resulting to net foreign selling.
The benchmark Philippine Stock Exchange index (PSEi) plunged by 2.24 percent or 176.03 points to close at 7,701.60 while the wider All Shares fell by 1.72 percent or 80.18 points to close finish at 4,581.89.
Foreign buying reached P3.19 billion while foreign selling was registered at P4.17 billion.
This brought about net foreign selling of P983.42 million, dragging the local bourse anew.
“Local shares were sold down [as] China and the US agreed to a phase one deal as investors deployed their funds back into the US markets,” Regina Capital Development Corp. head of sales Luis Limlingan said.
The world’s two economic superpowers on Friday said they had finally reached a partial deal that will cool down their long-running tariffs row, cancelling the imposition of fresh measures and winding back some.
Under the agreement, US President Donald Trump agreed to cancel tariffs due on Sunday and lower levies already in place, while China committed to purchases of US manufactured merchandise, energy goods, and farm exports, with the text due to be signed early next month.
Meanwhile, brokerage firm 2TradeAsia said the PSEi began the week with “steep selling” as foreign investors abandoned local bourse.
Wall Street was nearly flat. Dow Jones and S&P 500 inched up by 0.01 percent both while Nasdaq added 0.20 percent.
Most Asian markets were down. Tokyo slipped 0.29 percent, Hong Kong slid 0.34 percent, Seoul dropped 0.10 percent, Singapore declined 0.03 percent, Thailand dipped 0.76 percent, and Vietnam decreased by 0.21 percent.
Meanwhile, Shanghai gained 0.56 percent and Jakarta rose 0.39 percent.
In Manila, sectors nearly ended in a bloodbath as mining and oil bucked the downtrend with 1.12-percent gain.
Volume turnover stood at 483.74 million, amounting to P6.23 billion.
Decliners led advancers, 126-70, while 73 issues were unchanged.
WITH A REPORT FROM AFP