Stock index falls below 7,500 support level
The local stock barometer slipped below the critical 7,500 mark on Wednesday as fresh global trade jitters spooked regional markets and caused more foreign outflows from local equities.
The main-share Philippine Stock Exchange index (PSEi) lost 68.81 points or 0.92 percent to close at 7,449.20, weighed down by some P886.62 million in net foreign selling.
In a research note, ING expected investors to react adversely to China’s latest play in the ongoing US-China trade dispute. “By calling on the WTO (World Trade Organization) to enforce a 2013 ruling, China hopes to put the United States on the backfoot, showing that they would make good on their promise to retaliate against any stiff trade sanctions from the United States,” ING said in a research note.
Meanwhile, ING aired caution over Supertyphoon Mangkhut, which was set to enter the Philippine area of responsibility on Wednesday, noting this could bring about widespread damage to northern Luzon, where most of the crop production takes place. “This could exacerbate price pressures in the Philippines as the harvest season is just about to begin,” ING said.
The day’s decline was led by the financial, industrial and holding firm counters, which all tumbled by more than 1 percent, while the property counter also slipped. The services and mining/oil counters firmed up.
Value turnover for the day amounted to P5.67 billion. There were 101 decliners that edged out 83 advancers, while 56 stocks were unchanged.
The PSEi was weighed down most by AEV and URC, which both slid by more than 6 percent, while JG Summit lost 5.49 percent.
BDO, the day’s most actively traded company, fell by 3.39 percent. Jollibee lost 2.54 percent, while BPI and Security Bank declined by over 1 percent.
Ayala Land, SM Investments, AGI and Metro Pacific also declined.
Globe Telecom and PLDT bucked the downturn.
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