PHILIPPINE equities tracked declines in US markets over the weekend, fed by negative sentiment on concerns that the Federal Reserve may raise interest rates any time this month and the downward revision in China’s gross domestic product (GDP) results.
After losing 1.26 percent by the noon recess, the PSEi resumed to widen its losses and slumped by 1.77 percent or 124.96 points at 6,926.82 at the closing bell, while the broader All Shares fell by 1.46 percent or 58.59 points to 3,965.01.
“Local shares followed US equities’ weakness last week. There is also a lot of negative sentiment at the moment, given the prospects of a US rate hike and the downward revision of China’s GDP,” Alexander Adrian Tiu, analyst at AB Capital Securities Inc., said in a text message.
“Investors are largely risk-off as can be seen in the low volume and value turnover,” he added.
“Wall Street’s descent weighed on local equities as improving labor market conditions continued to solidify the case for an interest rate lift off,” Jason Escartin, equities analyst at F. Yap Securities Inc. said in another interview.
The Dow Jones Industrial Average lost 272.38 points or 1.66 percent at 16,102.38 on Friday, while the S&P 500 erased 29.91 points or 1.53 percent at 1,921.22 and the Nasdaq slipped by 49.58 points or 1.05 percent at 4,683.92.
The six subsectors of the Philippine market lost by over 1 percent on Monday, led by the 2.005-percent loss registered by holding firms.
More than 1.231 billion shares, valued at P4.063 billion, changed hands. Decliners outnumbered advancers, 131 to 36, while 42 issues were unchanged.