Index continues retreat on China woes

MANILA, Philippines - Share prices retreated anew yesterday as concerns on China’s equity and economic slump continue to affect the market, analysts said.

The benchmark PSEi tumbled 14.40 points, or 0.20 percent, to finish at 7,072.46, while the broader All Shares index ended at 4,037.83, down 6.66 points or 0.16 percent.

“After a rather decent performance to open September trades, the bulls appeared to have run out of strings to hang on to, leaving the market to the bears in early Wednesday trades,” said Justino Calaycay of Accord Capital.

He said uncertainties continue to come from China.

“Headwinds are still coming from the direction of China as investors’ thoughts are enveloped with uncertainties on how deep the equity slump and how long before it is able to address the broad economy’s slowdown,” he said.

Value turnover amounted to P8.493 billion. Decliners outnumbered advancers, 107 to 60 while 43 stocks were unchanged.

“The Shanghai market in particular has, as of Tuesday’s close, wiped out all gains for the year and settled with losses of 2.10 percent. This becomes even more significant in light of the fact that this market was once running gains of as much as 60 percent through the first six months of the year – meaning it has only taken half the time to take everything back,” Calaycay said on the China market.

During yesterday’s trading session, only the holding firms and mining and oil sectors moved up.