US budget woes continue to dampen stocks

MANILA, Philippines - Investor worries over the ongoing debates on the new US budget pushed local stocks in the red for the third straight day.

The Philippine Stock Exchange index shed 0.20 percent or 12.96 points to 6,407.46, while the broader all shares index declined 0.34 percent or 13.06 points to 3,840.48.

The main index was still able to close within the 6,400 level after hitting an intraday low at 6,370.34.

No positive leads were derived from overseas markets, which are still in fear over a potential shutdown of the US government if no new budget is passed by Oct. 1.

Wall Street retreated for the fifth straight day, driven by worries on retail giant Wal-Mart and the US debt ceiling.

The Dow Jones industrial average eased 0.4 percent or 61.33 points to 15,273.26 while the broader Standard & Poor’s 500 index slipped 0.3 percent or 4.65 points to 1,692.77.

Closer to home, the pessimism in developed markets rubbed off on Asian stocks. Hong Kong’s Hang Seng index dropped 0.36 percent or 84.60 points to 23,125.03 but Japan’s Nikkei 225 climbed 1.22 percent or 178.59 points to 14,799.12 following talks of corporate tax cuts.

In the local bourse, trading was lackluster, with the value of shares traded slipping to P6.9 billion from P7.16 billion on Wednesday.

Losers edged out winners, 94 to 48, while 42 stocks did not change.