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Inflation surprise fails to boost PSEi

Inflation surprise fails to boost PSEi

December 06, 2018

The stock market slumped by nearly 1 percent on Wednesday as a rout on Wall Street — triggered by renewed concerns over the US-China trade war and Brexit — overshadowed news that domestic inflation had finally started easing in November.

The Philippine Stock Exchange index (PSEi) dropped by 0.95 percent or 73.02 points to close at 7,630.90 while the wider All Shares declined by 0.62 percent or 28.35 points to finish at 4,574.16.

After news of a US-China trade truce lifted global markets at the start of the week, investors have again begun to worry given the lack of details. Narrowing US bond yields and a series of Brexit-related parliamentary defeats for British Prime Minister Theresa May also added to the concerns.

Regina Capital Development Corp. head of sales Luis Limlingan said market players sold on news that US President Donald Trump had warned “remember, I am a Tariff Man” and also left the door open to a extension of the 90-day timeline to end to trade row.

Summit Securities Inc. President Harry Liu agreed, saying “traders were cautious that there might not be a successful negotiation between the US and China.”

Limlingan also cited fears that short-term US bond yields could overtake long-term rates, which are seen as a sign of an impending recession.

Overnight, the Dow dove 3.1 percent, S&P 500 tanked 3.2 percent and the Nasdaq plunged 3.8 percent.

In Asia Hong Kong plunged 1.6 percent, Shanghai ended 0.6 percent lower and Tokyo was down 0.5 percent.

Singapore shed 0.8 percent and Seoul was 0.6 percent off, while Wellington dove one percent. Sydney slipped 0.8 percent after data showed the Australian economy grew at a slower pace than expected in July-September.

In early European trade London fell one percent, while Paris and Frankfurt were each more than one percent lower.

In Manila, sectoral results ended mixed, with the industrial and mining and oil indices the only gainers.

More than 1.66 billion issues valued at P8.3 billion changed hands.

Losers led winners, 98 to 96, while 34 issues were unchanged.

With a report from AFP

Credit belongs to : www.manilatimes.net

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