MANILA -- Trade war concerns along with fears of a further rise in domestic inflation due to Typhoon Ompong's (Mangkhut) devastation increased risk-off sentiment resulting in another slide of the Philippines main equities gauge but the peso improved in line with its regional peers.
The Philippine Stock Exchange index (PSEi) ended the day on the red at 7,286.34 points, down 1.72 percent, or 127.22 points, which a trader traced to concerns on the possible trade war between the US and China.
This, after US President Donald Trump orders the implementation of additional USD200 billion tariff on Chinese goods beginning next week.
Meanwhile, reports said Chinese officials have threatened to impose similar tariff on US commodities, impact of which on China’s economic growth is seen to be countered by higher infrastructure spending.
Also, inflation outlook is seen to be affected by the impact of the Typhoon Ompong.
Inflation in the first eight months this year averaged at 4.8 percent, higher than the upper end of the government’s two to four percent target bank until 2020. It has been on the rise due to supply-side factors.
These factors dampened sentiments resulting to the negative close of all the counters in the local stock market.
The broader All Shares contracted by 1.35 percent, or 61.29 points, to 4,488.71 points.
Financials led the sectors in terms of decline after it fell 2.80 percent. Mining and Oil trailed with a drop of 2.10 percent as well as Property, 2.04 percent; Holding Firms, 1.43 percent; Industrial, 1.15 percent; and Services, 0.50 percent.
Volume reached 1.23 billion shares amounting to Php6.59 billion.
Losers led gainers at 155 to 50 while 35 stocks were unchanged.
Meanwhile, the peso ended the day at 54.07 from 54.11 a day ago, which a trader pointed to rebound of regional currencies during the day as investors weigh external developments.
It opened the trade almost flat at 54.15 from the previous session’s 54.1.
It was able to strengthen to 54.06 but also moved to 54.17, resulting to an average of 54.102.
Volume of trade amounted to USD766.45 million, lower than the USD807.2 million. (PNA)
