Stocks fall on rising Mideast tension
The local stock barometer fell sharply on Wednesday as geopolitical tension in the Middle East escalated after Iran fired missiles at military bases in Iraq in retaliation for an earlier US attack.The Philippine Stock Exchange index (PSEi) lost 104.46 points, or 1.33 percent, to close at 7,736.24, in line with the downturn across regional and US futures markets.
“The story remains the same with the world focused on the US-Iran conflict—and likewise the latest development being Iran’s retaliation this morning as it sent missiles to US bases [in Iraq],” local stockbrokerage Papa Securities said.
Resistance for the PSEi was seen at the 7,900 level as risk-off sentiment prevailed across regional markets while support was seen by Papa Securities at a low of 7,469 on Dec. 20, 2019.At the local market, the decline was led by the industrial counter, which lost 2.34 percent. The financial and holding firm counters fell by more than 1 percent while the services and property counters also slipped.
Only the mining/oil counter gained by about 1 percent amid the Middle East tension.
Value turnover for the day amounted to P5.17 billion. There was net foreign selling of P428.75 million for the day.
There were 127 decliners that edged out 60 advancers while 52 stocks were unchanged.
The PSEi was dragged down most by Jollibee, GT Capital and URC, which all fell by more than 3 percent.
JG Summit lost 2.81 percent while Metro Pacific shed 2.2 percent.
BDO declined by nearly 2 percent, while SM Prime, SM Investments, BPI, Ayala Corp. and Security Bank all declined by more than 1 percent.
Ayala Land, ICTSI, PLDT and Metrobank also slipped.
Outside of the PSEi, one notable decliner was Manila Water Co. Inc., which fell by 6.12 percent as investors awaited the terms of the new water concession contract that Malacañang wanted Manila Water and Maynilad Water Services Inc. to accept, or face charges of economic plunder or estafa.
On the other hand, Megaworld gained 2.88 percent while DMCI inched up by 0.29 percent.One notable gainer outside the PSEi was Cirtek Holdings, which surged by 10.93 percent.
