Stocks reverse course ahead of holiday break

Trading was muted yesterday as market investors took on a holiday mood ahead of the holiday break and because of renewed concerns over the US-China trade war.

The benchmark Philippine Stock Exchange index (PSEi) plunged by 92.97 points to close at 7,016.06.

Similarly, the broader All Shares gauge was also down 43.59 points or one percent.

Most of the counters were also in the red except for the financials and mining and oil which both managed to stay in the green.

Total value turnover was thin at P3.9 billion. Market breadth was positive, 94 to 59 while 62 issues were left unchanged.

Commenting on yesterday’s session, Luis Limlingan of Regina Capital said shares fell because of the renewed threats of a US-China trade war.

“Philippine shares faltered with another threat from US on China. President Donald Trump’s administration could announce, by early December, tariffs on all remaining Chinese imports, if talks next month between Trump and Xi Jinping aren’t fruitful. Trump and Xi will meet at the G20 Leader’s conference in November. The value of all goods from China not currently subject to US duties is about $257 billion,” Limlingan said, citing data from Bloomberg.

He said this wasn’t reflected just in the Philippines but in the US as well.