Looming US-China trade war drags down PSEi but Peso stays firm
MANILA (Philippines News Agency) — Philippine Stock Exchange index (PSEi) succumbed to profit-taking Wednesday while the peso ended little changed against the greenback on concerns of a possible trade war between the US and China.
The local currency finished the day at 52.12 from the previous session’s 52.08, which a trader attributed to investors’ cautious stance on the looming trade war between the world’s two largest economies. This, after reports said that the US is preparing a list of Chinese products that would possibly be slapped with tariffs upon its entry in the US.
With risk-off up, the local unit opened the day at 52.00 from 52.08 Tuesday. It traded between 52.14 and 51.99, resulting to an average of 52.059. Volume for the day reached USD504.4 million, down from the previous day’s USD657.5 million. The currency pair is seen to trade between 51.90 and 52.10 Thursday.
On the other hand, PSEi fell 0.63 percent, or 51.05 points, to 7,997.67 points. A trader said investors took profit after the recent two-day rally of the main index. All Shares also ended on the red after it declined by 0.29 percent, or 13.87 points, to 4,858.03 points. Most sectors also tracked the main gauge, led by the Services with 1.08 percent drop, and followed by the Holding Firms, 0.82 percent; Financials, 0.69 percent; and Industrial, 0.54 percent.
Meantime, Mining and Oil rose by 2.05 percent and Property by 0.13 percent. Volume for the day reached 1.67 billion shares amounting to PHP6.93 billion. Losers led gainers at 107 to 103 while 46 shares were unchanged. (PNA)