Brewing trade war spooks investors
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.
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.
The 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.
However, 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 and Bank of the Philippine Islands, up 3.27 percent to P120.
