PSEi touches 6,900
Continued sell-off blamed on escalating global trade tensions
THE stock market capped the week by falling for a seventh straight session on Friday, briefly dipping to the 6,900 level with sell-offs persisting in the wake of news that more countries had announced retaliatory tariffs against the United States.
The bellwether Philippine Stock Exchange index (PSEi) fell to as low as 6,923,67 in morning trade but recovered some ground to end the day at 7,063.20, down 34.95 points or 0.49 percent and also the lowest in over 17 months since a 7,030.95 close on January 4 last year.
Already in bear territory, the market is now down 22.02 percent from January 29, 2018’s record peak of 9,058.62.
The wider All Shares, meanwhile, dropped by 0.51 percent or 22.15 points to finish at 4,347.06.
“The PSEi is still bearish as major support levels have been broken down due to the absence of strong local catalysts. Investors are also worried about the escalating trade tensions between China and the US,” Timson Securities, Inc. trader Jervin de Celis said.
India and the European Union were among the latest countries to announce tariffs on United States goods, fueling concerns of a full-blown global trade war that has spooked stock markets worldwide.
EU tariffs on iconic US goods such as bourbon, whiskey, jeans and motorcycles took effect Friday in response to
US President Donald Trump’s decision to slap tariffs on European steel and aluminum exports.
India also responded to the metals tariffs by imposing duties on a range of US goods worth $240 million.
Retaliatory tariffs have also been announced by China, Canada and Mexico, and are being planned by other countries such as Japan and Russia.
In a separate comment, Regina Capital Development Corp. Managing Director Luis Limlingan said the PSEi had mimicked its US counterparts, which closed solidly lower on Thursday.
Wall Street’s three main indices fell overnight, with the Dow Jones down 0.80 percent, the S&P 500 dropping 0.63 percent, and the tech-heavy Nasdaq decreasing 0.88 percent.
In the region, Tokyo dropped 0.78 percent, Singapore dipped 0.23 percent, and Bangkok slid 0.17 percent. Shanghai, Hong Kong and Seoul gained 0.49 percent, 0.15 percent and 0.83 percent, respectively.
Back in Manila, most sectoral indices declined except for mining and oil and property, which gained by 1.26 percent and 0.65 percent, respectively.
Over 1.87 billion shares valued at P8.05 billion changed hands.
Losers led winners, 129 to 76, while 46 issues were unchanged.
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