Shares slip on HK protests, weak US consumer confidence


PHILIPPINE shares on Wednesday shed most of the modest end-of-quarter gains, troubled by the continuing citizens’ protests in Hong Kong, as well as negative Wall Street leads following the sudden drop in the US consumer confidence index.

The Philippine Stock Exchange index (PSEi) dropped 0.21 percent or 15.01 points to 7,268.06, while the broader All Shares index lost 0.27 percent or 11.60 points to 4,293.85.

Justino Calaycay Jr. of Accord Capital Equities Corp. said that the local stock market mirrored the global markets’ declines on the back of the Hong Kong protests and lower US consumer confidence data.

“Share prices tumbled anew as the stand-off in Hong Kong entered a fifth day and the US consumer confidence slipped,” Calaycay said.

According to a report from the Conference Board, a group of private researchers, the US consumer confidence index fell 86 points in September from 93.4 points in August, which had previously been revised upward from 92.4 points. The September figure is one of the lowest since May, while the August figure was the highest record since October 2007.

“US stocks tumbled overnight even as European stock markets inched higher. Asian bourses are generally lower,” Calaycay added.

Wall Street was in the red, with the Dow Jones Average down 28.32 points, S&P 500 lower by 5.51 points, and the Nasdaq off 12.46 points.

Calaycay said the Hong Kong protests affected the global markets because the Hang Seng index of Hong Kong is “the fifth-largest stock market” among the global financial markets.

Holding firms advanced among the sectoral indices, closing ahead 0.23 percent or 14.90 points at 6,429.87. Financials were down 0.56 percent or 9.49 points at 1,697.57; industrials declined 0.80 percent or 93.89 points to 11,624.94; services ended lower by 0.44 percent or 9.47 points at 2,122.45; mining and oil fell 0.92 percent or 158 points to 16,969.26; and property shed 0.57 percent or 16.25 points to 2,847.27.

Only Globe Telecom gained among the most active issues, picking up 1.66 percent or P27 to close at P1,650 after several days of sustained losses. Metropolitan Bank and Trust Company ended flat, while Philippine Long Distance Telephone Co., Nickel Asia Corp., Ayala Land, BDO Unibank, Energy Development Corp., Travellers International Hotel Group, Megaworld Corp. and Universal Robina Corp. all declined.

Trading volume was high at 15.124 billion shares, while value turnover was at P9.138 billion. Decliners heavily outnumbered advancers, 125 to 56, while 41 shares were unchanged.

On Tuesday, the main PSEi advanced 0.24 percent or 17.71 points to 7,283.07, while the wider All Shares index inched up 0.08 percent or 3.48 points to 4,305.45.


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