Stocks snap 3-day uptick on renewed US-China tensions

MANILA, Philippines — The local stock market ended its three-day upswing yesterday, closing 65.30 points or 1.16 percent lower at 5,539.19.

Likewise, the broader All Shares index lost 24.98 points or 0.74 percent to finish the week at 3,349.98.

All other gauges were down as well, with the financials and mining and oil sectors leading the decliners.

Total value turnover reached P4 billion and market breadth was negative, 125 to 49, while 44 issues were left unchanged.

Brokerage firm AB Capital said the local market snapped its three day winning streak amid escalating US-China tensions which also affected Wall Street overnight.

According to reports, China reiterated a pledge to implement the first phase of its trade deal with the US on the back of escalating tensions between the two superpowers, triggered by the coronavirus disease 2019 or COVID-19 situation. The US has been criticizing China for its handling of the pandemic such as the lack of transparency during the early stage of the outbreak.

Over the past two years, the Trump administration had imposed punitive duties on roughly $360 billion in Chinese goods, and China retaliated by raising levies on more than half of America’s exports. The two sides signed a Phase-1 trade pact on Jan. 15 and rolled back some of the tariffs, but the agreement has come under treat as the two nations escalate disputes, according to a Bloomberg report.