Global risk-off sentiment sinks PSEi, peso holds ground

MANILA — Trade war concerns, along with the slide of Wall Street, resulted in the negative close of the Philippine Stock Exchange index (PSEi) but the peso managed to stay afloat during Thursday’s trading.

PSEi declined for the third consecutive day after it gave up 2.28 percent, or 162.58 points, to 6,966.84 points.

Landbank market economist Guian Dumalagan attributed the main index’s negative close to “a sharp sell-off in the US.”

“With global growth slowing, trade tensions escalating, and a string of weaker-than-expected Q3 earnings reports from US industrials, it was just a matter of time before equity markets worldwide finally dipped,” he said.

Dumalagan said the PSEi may make a recovery soon on the back of better earnings report, lower inflation and stronger gross domestic product (GDP) figures.

The main gauge’s performance for the day was mirrored by all other counters, with the broader All Shares down by 1.86 percent, or 81.07 points, to 4,281.24 points.

Property registered the biggest decline after it fell 2.64 percent and was followed by Financials, 2.52 percent; Industrial, 2.37 percent; Holding Firms, 1.94 percent; Services, 1.49 percent; and Mining and Oil, 0.41 percent.

Volume was thin at 870.53 million stocks amounting to PHP5.5 billion.

Decliners continue to exceed advancers at 146 to 38 while 34 shares were unchanged.

The peso ended the day’s trade at 53.8 from 53.725 in the previous session, which a trader pointed to global risk aversion.

For the day, the local unit opened at 53.81, little changed from the 53.78 in the previous session.

It traded between 53.83 and 53.745, resulting in an average of 53.789.

Volume reached USD667.1 million, lower than the USD707.05 million a day ago.

The currency pair is seen to trade between 53.70 and 53.90 Friday. (Joann Villanueva/PNA)

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