Philippine stocks enter bear territory in intraday trade

MANILA, Philippines — Philippine stocks, which has been dubbed Asia’s worst-performing equity market, touched the bear territory in intraday trade Tuesday dragged down by a weak peso and escalating trade friction between the US and China.

The 30-member Philippine Stock Exchange index, a barometer of investor confidence, sank 1.37 percent or 101.50 points to 7,312.61. The local bourse has sagged by 19.27 percent since hitting an all-time high of 9,058.62 on Jan. 29, 2018.

The PSEi on Tuesday also posted an intraday low of 7,253.12. For Philippine stocks to enter a bear market, it should drop to 7,262, or 20 percent from its highest recorded level.

Meanwhile, the broader all-shares index fell by 1.09 percent or 49.33 points to 4,481.71 while all sectoral counters ended in red.

Global stock markets fell Tuesday after US President Donald Trump escalated a dispute with Beijing over technology policy by threatening a tariff hike on an additional $200 billion of Chinese goods.

“Philippine shares were not spared by the onslaught,” Luis Limlingan of Regina Capital said in a market commentary, adding that the Philippines continued to “face more headwinds than other regions.”

“This was because analysts are torn on the outcome of the Bangko Sentral ng Pilipinas' meeting tomorrow. Many are debating whether the BSP will leave policy rates unchanged,” he said.

“This is because overall inflation has been creeping up, driven mostly by supply side factors and TRAIN. The peso has also weakened touching 53.50 to the dollar as a result of this,” he added. — Ian Nicolas Cigaral with The Associated Press