Stocks tumble on jitters over US stand on Hong Kong issue

MANILA, Philippines — A new development that could further fuel tensions between the US and China sent the stock market crashing yesterday.

The Philippine Stock Exchange index tumbled for a second consecutive session to close the week on a sour note, dropping 0.38 percent or 29.70 points to close at 7,738.96.

The broader All Shares index was likewise in the red, dropping 0.38 percent or 18.11 points to finish at 4,632.84.

“Philippines shares along with US stock futures tumbled on Thanksgiving after US President Donald Trump signed into law a controversial bill backing Hong Kong protestors,” Regina Capital’s Luis Limlingan said.

Limlingan said the move can potentially add strain to the US’ current trade relationship with China.

The Hong Kong issue likewise left other regional markets reeling as they also closed in the negative territory.

In the local market, only two gauges managed to end on a positive note. These were the property and services, which rose 0.43 percent and 0.08 percent, respectively.

The rest were in the red, led by the mining and oil counter as well as financials which plunged 1.89 percent and 1.59 percent, respectively.

Value turnover stood at P6.37 billion. Market breadth was negative as decliners pummeled advancers, 125 to 63, while 48 stocks did not change.