Brewing trade war spooks investors

—INQUIRER FILE PHOTO
MANILA, Philippines — Despite approaching the 6,000 level early in the day, the local bourse settled back to 5,800 by the end of the session on Monday as investors reacted to the trade war happening in the West.
By the closing bell, the benchmark Philippine Stock Exchange Index (PSEi) inched up by 0.35 percent, or 20.45 points, to 5,883.04.
Likewise, the broader All Shares Index rose by 0.41 percent, or 14.29 points, to close at 3,534.61.
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A total of 1.26 billion shares worth P11.37 billion changed hands, stock exchange data showed, as foreigners made net purchases worth P695.09 million.
Article continues after this advertisementThe PSEi started the day at 5,986.65 and even went as high as 5,994.04. Analysts earlier saw an opportunity for bargain hunting following last week’s fall into the bear territory.
Article continues after this advertisementHowever, investors eventually absorbed the start of the trade war between the United States and Canada, Mexico and China, said Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp.
This raised concerns “about trade tensions and economic uncertainty,” Limlingan added.
Only services firms ended in the red due to a 2.57-percent decline in index heavyweight International Container Terminal Services Inc. (ICTSI) to P341 each.
China Banking Corp., a new index member, was the top-traded stock as it closed flat at P93 each.
It was followed by Ayala Land Inc., up 7.62 percent to P24; SM Investments Corp., down 1.41 percent to P769; BDO Unibank Inc., down 0.44 percent to P137; and ICTSI.
Other actively traded stocks were DigiPlus Interactive Corp., which surged by 10.22 percent to P29.65; AREIT Inc., down 4.76 percent to P40; Bank of the Philippine Islands, up 3.27 percent to P120; Wilcon Depot Inc., down 4.76 percent to P8 after its exit from the 30-member PSEi; and Universal Robina Corp., down 4.77 percent to P57.90 each.
Losers overpowered gainers, 131 to 81, while 30 companies closed unchanged, stock exchange data also showed.