Index extends losing streak

MANILA, Philippines - Share prices tumbled for the sixth session in a row yesterday due to global uncertainties, analysts said.

The benchmark Philippine Stock Exchange index (PSEi) went down 49.27 points, or 0.65, to finish at 7,445.14, while the broader All Shares index eased 22.59 points, or 0.50 percent, to end at 4,419.30.

Analysts said global uncertainties weighed on sentiment. “European markets slipped weighed down by a drop in commodities and indications the Bank of England isn’t leaning towards easy money. US stocks struggled with the DJIA managing gains of 30 points late-in-the-session. The S&P500 and the Nasdaq fell. Earnings expectations dragged on over-all sentiment,” said Justino Calaycay of A&A Securities.

Richard Lañeda, senior research manager at Col Financial said there are also concerns on President Duterte’s rhetoric. “There is increasing concern that the President’s rhetoric against the US and his recent declaration of separation from the US will negatively impact the BPO industry which generates $23 billion in revenues and provides 1.1 million jobs. This is understandable given that 77 percent of the business of the BPO industry is dependent on American companies and clients,” he said.

Among the different counters, the financials and mining and oil index closed in positive territory while the rest tumbled.

Market breadth remained negative as decliners outnumbered advancers, 102 to 75 while 41 stocks were left unchanged.