Stocks dip on prevailing concerns abroad

MANILA, Philippines — Concerns prevailing abroad led to a third straight day of decline in the local market, albeit a lower one compared to Monday’s huge selloff.

The benchmark Philippine Stock Exchange index slipped by 0.02 percent or 1.49 points to close yesterday’s session at 6,433.24.

The broader All Shares index, however, moved in the opposite direction as it added 0.13 percent or 4.47 points, settling at 3,520.94.

Philstocks Financial research and engagement officer Mikhail Plopenio said the local bourse inched down as investors took profits on the last minute.

While the market was initially trading in the green yesterday due to bargain hunting following the previous day’s steep decline, Plopenio said a surge of last minute profit taking pushed it into the negative territory at the end of the session.

“Philippine shares ended with a flat performance despite a strong rebound early mornings as the investors continue to monitor economic data in both the US and Japan especially for signs of a global recession,” Luis Limlingan of Regina Capital said separately.

“Wall Street also opened this trading week in the red as global markets faced a selloff. A weaker-than-expected July jobs report released on Friday raised concerns that the Federal Reserve might be lagging in cutting rates, heightening fears of a recession. These concerns rippled through global markets, with Japan’s Nikkei 225 index experiencing its worst daily decline since Black Monday in 1987,” Limlingan said.

Net market value turnover thinned to P4.6 billion from P5.17 billion the previous day.

Sectoral gauges were a mixed bag with three in the red and three in the positive territory.

Mining and oil index took the biggest plunge by 1.76 percent, while the property index posted the highest jump at 0.6 percent