PSEi falls on North Korean jitters

Missiles are paraded across Kim Il Sung Square during a military parade Saturday, April 15, 2017, in Pyongyang, North Korea, to celebrate the 105th birth anniversary of Kim Il Sung, the country’s late founder and grandfather of current ruler Kim Jong Un. (AP FILE PHOTO/Wong Maye-E)

The local stock barometer fell below the 8,000 mark on Wednesday, tracking mostly sluggish regional markets as investors weighed fresh threats of military action by North Korea.

The main-share Philippine Stock Exchange index lost 65.38 points or 0.81 percent to close at 7,983.97, paring gains in the last four trading days.

“Philippine and US stocks sank coming back from a holiday break, as investors sold stocks due to tension at the two divided Korean (states). Look to a negative start as sentiments look to be still weak, with investors eyeing developments at Korea,” said Luis Gerardo Limlingan, managing director at Regina Capital Development.

A top North Korean diplomat, Han Tae Song, ambassador to the United Nations in Geneva, confirmed that North Korea had successfully conducted its sixth and largest nuclear bomb test on Sunday, adding that the US was bound to receive “more gift packages,” accusing the US reckless provocations and attempts to put pressure on North Korea.

On the other hand, Limlingan noted how Russia’s U.N. Ambassador Vassily Nebenzia had said that the US’ bid for the Security Council to vote on Sept. 11 on new sanctions would be “a little premature.”

At the local market, all counters ended in the red but the mining/oil counter was the most battered with its 1.14- percent decline.

Value turnover for the day stood at P6.72 billion. There were 111 decliners that outnumbered 71 advancers while 66 stocks were unchanged.

Reflecting risk aversion, foreign investors were net sellers for the day to the tune of P315.63 million.

The market was weighed down most by GT Capital Holdings Inc., which fell by 2.21 percent, while SM Prime, Metrobank, PLDT, SM Investments, BPI, AGI, Jollibee and Security Bank all slipped by over 1 percent.

BDO Unibank, the day’s most actively traded company, fell by 0.78 percent, while Ayala Land, Ayala Corp., Semirara, Max’s Group and ICTSI also contributed to the PSEi’s decline.

On the other hand, Megaworld bucked the day’s downturn, gaining 2.37 percent. MPIC, URC and DMCI all added over 1 percent.