PSEi drops on manufacturing data, China issues

psei drops on manufacturing data china issues - PSEi drops on manufacturing data, China issues

By Denise A. Valdez, Senior Reporter

THE MAIN INDEX continued to drop on Tuesday, marking its fourth straight day of decline, on lower local manufacturing data and geopolitical tensions involving China.

The 30-member Philippine Stock Exchange index (PSEi) lost 84.94 points or 1.44% to close at 5,799.24, while the broader all shares index shaved off 33.32 points or 0.94% to end at 3,501.26.

The market was closed on Monday in observance of National Heroes’ Day.

“Last-minute profit taking extended the local bourse’s decline…. The pessimism in (Tuesday’s) trading can still be attributed to the worries over the local economy,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a text message.

He said investors took cues from the release of August manufacturing data, which showed that factory activity in the country continued to fall for a sixth consecutive month.

“Our manufacturing figure somehow shows that our economy remains challenged due to our quarantine measures in place which were even tightened in some areas in Luzon last August,” Mr. Tantiangco said.

“Anti-China tensions” also influenced the downward pull of the PSEi, Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message. The Asian economic giant is currently in conflict with Australia, the United States and India, each for different reasons.

Tensions with Australia were caused by the detention of an Australian journalist who works as a television anchor in China, news wires reported Monday.

Meanwhile, friction with the United States was fanned by the announced crackdown on Chinese apps by Washington as told by Peter Navarro, US President Donald Trump’s trade adviser, to Fox Business.

Beijing’s dispute with India likewise continued after China called on the country to withdraw its troops that were allegedly crossing their shared border in the Himalayas illegally.

Back home, half of the sectoral indices ended the session with losses: holding firms fell 130.73 points or 2.14% to 5,969.17; services dropped 29.38 points or 1.98% to 1,453.55; and property slid 47.71 points or 1.76% to 2,662.89.

The three indices that gained were mining and oil, which rose 214.59 points or 3.57% to 6,219.66; industrials, which improved 57.43 points or 0.73% to 7,848.69; and financials, which picked up 7.43 points or 0.65% to 1,137.13.

Value turnover on Tuesday stood at P6.86 billion, down from P8.26 billion in the last session. Some 1.87 billion issues switched hands.

Decliners outpaced advancers, 99 against 85, while 57 names ended unchanged.

Foreign investors remained sellers, but net outflows were reduced to P261.55 million from P1.63 billion in the last session.

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