MANILA – The main stock gauge returned to the negative territory on Wednesday after a recovery in the previous session on volatile trading overseas, while the peso managed to close the day sideways against the US dollar.
The Philippine Stock Exchange index (PSEi) shed 1.12 percent, or 82.42 points, to 7,261.54 points.
All Shares followed with a drop of 0.70 percent, or 27.15 points, to 3,855.25 points.
The majority of the sectoral indexes tracked the main index, with Property declining by 1.76 percent; Financials, 1.38 percent; Services, 1.15 percent; and Holding Firms, 1.03 percent.
On the other hand, the Mining and Oil index rose by 0.21 percent and Industrial by 0.08 percent.
Volume was thin at 859.13 million shares amounting to PHP5.3 billion.
Decliners led advancers at 103 to 75, while 50 shares were unchanged.
“Philippine shares fell following the sentiment abroad as stocks across the region got battered on Tuesday in a volatile start to the holiday-shortened trading week as rising bond yields, persisting rate pressures and an earnings miss by Goldman Sachs weighed on markets,” said Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales.
Limlingan cited the jump of oil prices in the international market to its highest since 2014 on fears of possible supply disruption following the attacks in the Middle East.
Reports said Yemen’s Houthi militants perpetrated the fuel tank blast in Abu Dhabi, the United Arab Emirates on Monday to warn the Gulf estate to stay out of a battle for the prized energy regions in Yemen.
Limlingan said this development resulted in the rise in futures of Brent crude by around 1.2 percent to USD87.50 per barrel and the West Texas Intermediate (WTI) by 1.6 percent to USD85.18 per barrel.
On the other hand, the peso finished the day little changed against the US dollar at 51.5 from the previous day’s 51.488 close.
It opened the day at 51.47, weaker compared to its 51.2 start in the previous session.
It traded between 51.5 and 51.41, bringing the day’s average to 51.458.
Volume totaled USD754.2 million, lower than the USD841.6 million a day ago. (PNA)