PHILIPPINE share prices retreated on Wednesday, tailing their US and regional counterparts in the absence of credible local market-lifting catalysts.
The benchmark PSEi was down 0.40 percent or 31.49 points to finish at 7,886.37. The broader All Shares dipped by 0.22 percent or 10.45 points to 4,708.79.
“Shares were dragged down with US stocks declining, oil prices slumping into a bear market, and the unexpected inclusion of China’s A-shares into the MSCI index,” Regina Capital Development Corp. Managing Director Luis Limlingan said.
China’s domestic A-shares will be included in the MSCI equity index, after having been rejected in three previous attempts. The index giant will add 222 China A Large Cap stocks starting next year.
Overnight, the tech-heavy Nasdaq lost 0.82 percent, the S&P 500 dipped 0.67 percent, and the Dow Jones Industrial Average (DJIA) declined by 0.29 percent.
Harry Liu, president of Summit Securities Inc., said the market softened due to jitters about a weak peso, the peace and order situation in Europe, and the ongoing battle in Marawi City.
“So market investors are a little bit going for the safety net, going to the sidelines for the mean time,” he said.
The sectoral indices were mixed. Services fell by 1.11 percent, Property dropped 0.81 percent, Financials dipped by 0.17 percent, and Industrials lost 0.004 percent. The Mining and Oil advanced by 0.13 percent and Holding Firms gained 0.03 percent.
More than 1.07 billion issues, valued at P8.1 billion, changed hands. Decliners overwhelmed advancers, 107 to 94, while 41 issues traded unchanged.