Share prices tumble on volatile trades

MANILA, Philippines — The Philippine stock market declined yesterday due mainly to the volatility of foreign participation in the local market.

First Metro Investment Corp. head of research Cristina Ulang said yesterday’s decline was due to the volatility of foreign participation in the local market, swinging from buying then selling alternately. “The market is finding it hard to price new Black Swans such as the monkeypox,” she said.

Thus, the Philippine Stock Exchange Composite index (PSEi), the benchmark gauge, slipped by 58.48 points or 0.87 percent to settle at 6,687.85.

Likewise, the broader All Shares index was also down by 22.03 points or 0.61 percent. Most of the other gauges were down except for mining and oil, which rose by 0.62 percent.

Total value turnover reached P6.641 billion. Market breadth was negative with 113 decliners versus 72 advancers with 58 issues unchanged.

Meanwhile, Asian stocks rose yesterday after US President Joe Biden said he was considering lifting some Trump-era trade tariffs imposed on China, although concerns over inflation and growth weighed on sentiment.

Tariffs on hundreds of billions of dollars of Chinese imports are due to expire in July, and Biden has faced growing calls to get rid of the punitive duties to help combat the highest US inflation in more than four decades.

Biden’s comments Monday during a visit to Tokyo come after Treasury Secretary Janet Yellen last week said some of the duties imposed by former president Donald Trump “seem to impose more harm on consumers and businesses” and do little to address real issues posed by the Asian giant.

The president also said a recession in the United States was not inevitable but acknowledged the economic pain felt by American consumers, saying “this is going to take some time”.

Ending the tariffs could help cut roaring US inflation by making imports cheaper.