PHILIPPINE shares retreated in early trading on Wednesday as the market reacted to news of weaker remittances from overseas Filipino workers (OFWs) in September.
The bellwether index lost 1.23 percent or 103 points to 8,276.64. The wider All Shares dropped 0.86 percent or 42.14 points to 4,871.77.
“[The market reacted to the news on] overseas remittances, which went down by 8.3 percent to $2.19 billion. The estimate was [it would be]up 7.4 percent,” an analyst from Regina Capital Development Corp. said.
“Net primary income from the rest of the world had a downward revision of 7 percent from 8.6 percent. Gross National Income (GNI) was maintained at 6.8 percent. So there may be more pressure for third quarter gross domestic product when it is released,” he added.
Ed Francisco, president of BDO Capital and Investments Corp., said market performance remained good, only reacting due to the long holiday.
“That’s okay. [There was a] holiday so volume [is]lighter. It should rebound next week,” Francisco said.
All subsectors in the market were in the red, with the holding firms sub-index leading the declines, down 1.92 percent. ANGELICA BALLESTEROS