Renewed US-China trade concerns dampen stocks

MANILA, Philippines — Share prices retreated yesterday on the back of renewed uncertainties on the US-China trade war.

The benchmark Philippine Stock Exchange Index(PSEi) dropped by 0.69 percent or 56.38 points to close at 8,009.38, while the broader All Shares Index fell 0.71 percent or 34.52 points to end at 4,789.28.

“Shares closed lower yesterday as US markets close for Veteran’s Day Holiday and investors continue to stay on the edge of latest trade talk negotiations,” Regina Capital Development Corp Business Development head Luis Limlingan said.

“President Trump said on Friday that he has not agreed the rollback of US tariffs sought by China, though he also commented that talks are moving along ‘very nicely,“ Limlingan said.

Philstocks Financial Inc. senior research analyst Japhet Tantiangco echoed Limlingan’s sentiments, noting the renewed uncertainties in the US-China trade talks,particularly on the disagreement of rollbacks on tariffs.

“Investors are worrying that this could derail the negotiations,”Tantiangco said.

“So far, the market is holding the ground above the 8,000 level, buoyed by the third quarter earnings released and the latest GDP figures,” he said.

As corporate earnings season is nearing the tailend, Tantiangco said if remaining earning reports remain positive, this would lead to the continued market trade at above the 8,000 level.

All sectoral indices ended in negative territory, with mining and oil posting the largest decline of the day, falling 2.41 percent or 219.65 points to close at 8,872.96.

A total of 65,924 trades valued at P5.39 million were made, while volume turnover stood at 827.8 million.

Declines outnumbered advanced 107 to 77, while 47 remained unchanged.