North Korea’s claim that the United States had declared war weighed on local share prices, with the benchmark Philippine Stock Exchange index (PSEi) down 0.90% or 74.59 points to close Tuesday at 8,170.14.
The wider All Shares also fell by 0.63 percent or 30.79 points to 4,831.86.
“Philippine and US stock market indexes fell with benchmarks adding to early losses from Monday amid a fresh flare up in tensions between the US and North Korea and a sharp decline in technology shares,” Regina Capital Development Corporation said.
North Korean foreign minister Ri Yong Ho announced that the US had effectively declared war after President Donald Trump tweeted that the communist “won’t be around much longer.”
“Later in that day, the US stated it had not declared war on North Korea … USD:JPY fell to 111.75 following the comment,” Regina Capital said.
Summit Securities President Harry Liu, meanwhile, said investors need not worry of recent declines as the “market is in a profit-taking situation…”.
The PSEi hit an all-time high of 8,294.14 last September 18 but succumbed to bargain hunting as the week proceeded.
“For as long as it is about 8,000, it’s okay,” Liu said.
Decliners outnumbered advancers on Monday, 138 to 63, while 53 issues were unchanged.
A total of 96,926 shares valued at P9.6 billion changed hands.