The bellwether Philippine Stock Exchange index (PSEi) retreated on Wednesday, losing 66 points following negative leads from Wall Street and other Asian markets, in light of geopolitical tensions and weak earnings of US companies.
“The market was down because it was only following the trend of the regional market. Wall Street was down over 113 points, with Asian markets also retreating with the exception of Nikkei,” BDO Unibank chief market strategist Jonathan Ravelas told The Manila Times.
The PSEi slumped by 0.87 percent or 66 points to finish at 7,522.98, while the broader All Shares retreated by 0.77 percent or 34.77 points to close at 4,502.07.
Regina Capital Corp. Managing Director Luis Limlingan said investors remained vigilant amid the US-North Korea tensions and the French presidential election. The first round of the elections is on April 23, the second round on May 7.
The Dow Jones Industrial Average (DJIA) was down 0.55 percent or 113.64 points on Tuesday (Wednesday, PH time) due to lower earnings from Goldman Sachs and Johnson & Johnson.
“British Prime Minister Theresa May announced that she is calling a snap general election in the UK, with the vote to be held on June 8, and so the Financial Times Stock Exchange 100 index fell sharply,” Limlingan said.
All sectors were down on the PSE, led by Services at -1.75 percent. Holding Firms lost 1.005 percent, Industrial declined by -1.002 percent, Mining and Oil went down by 0.66 and Property closed lower by 0.59 percent.
The Financial sector gained 0.04 percent at the close of trading.