Index eases as new NoKor bomb threat spooks investors
In this undated image distributed on Sunday, Sept. 3, 2017, by the North Korean government, shows North Korean leader Kim Jong Un at an undisclosed location. North Korea’s state media on Sunday, Sept 3, 2017, said leader Kim Jong Un inspected the loading of a hydrogen bomb into a new intercontinental ballistic missile, a claim to technological mastery that some outside experts will doubt but that will raise already high worries on the Korean Peninsula. Independent journalists were not given access to cover the event depicted in this image distributed by the North Korean government. The content of this image is as provided and cannot be independently verified. Korean Central News Agency/Korea News Service via AP
MANILA, Philippines — Share prices retreated yesterday after North Korea said it might test a hydrogen bomb in the Pacific Ocean, spooking most investors who decided to stay on the sidelines.
After piercing the 8,300 mark on Thursday, the benchmark Philippine Stock Exchange index (PSEi) declined 5.59 points to close at 8,281.27, while the broader All Shares gauge lost 6.61 points, or 0.13 percent, to end at 4,878.39.
Most counters ended in the red. Total value turnover was likewise thin at P6.15 billion. Market breadth was negative as decliners outpaced gainers — 109 to 93 while 47 issues were left unchanged.
Traders said the market was bound to correct after soaring to all time high last week as it continued to wait for sustainable catalysts such as the passage of the Duterte administration’s tax reform package.
Analysts said fresh threats from North Korea added to the jitters. North Korea hinted that it might test a hydrogen bomb over the Pacific Ocean.
In particular, North Korea’s foreign minister, Ri Yong Ho warned on Thursday that Pyongyang could test a powerful nuclear weapon over the Pacific Ocean. This would be in response to US President Donald Trump’s threats of military action, Ri said.
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