Stocks decline as investors worry over external issues

MANILA, Philippines —Share prices retreated yesterday as external market factors overshadow positive third quarter earnings of local firms.

The benchmark Philippine Stock Exchange Index (PSEi) declined 0.65 percent or 52.02 points to close at 7,880.94, while the broader All Shares Index also dropped 0.65 percent or 31.55 points to end at 4,720.26.

“Investors continued selling in the Philippines market as sentiment in the US became more positive after White House economic advisor Larry Kudlow announced that the US and China were closing in on a trade deal,” Regina Capital Development Corp. business development head Luis Limlingan said.

Philstocks Financial Inc. senior research analyst Japhet Tantiangco echoed Limlingan’s sentiments as he noted that the local market extended its losses today as investors continue to watch out for developments on the US-China trade negotiations.

“Today’s trading shows skepticism with respect to the talks, particularly the positive remarks given by both parties over the weekend,” Tantiangco said.

He added that investor sentiments were also dented by the political unrest in Hong Kong.

“So far, the noises from abroad are overshadowing our local fundamentals,” he added.

Tantiangco pointed out that third quarter corporate earnings season has just ended with index members’ combined first nine months net income up by about 15 percent year-on-year.

“Despite this, investors remain cautious as they seek for more clarity regarding the ongoing global narratives,” he added.

All sectoral indices closed in the red light, with mining and oil posting the largest decline at 2.20 percent or 192.05 points to close at 8,550.09.

A total of 75,813 trades valued at P4.3 billion were made, while volume turnover stood at 430.5 million.

Declines outnumber advances, 128 to 52, while 51 remained unchanged.