PHILIPPINE shares wiped out gains in early trading Friday as investors’ sentiment was dampened by the escalating trade wars from US and China.
The bellwether index succumbed 19.3 percent in morning trade or 156.77 points to pause at 7,967.68. The broader All Shares dropped 1.55 percent or 75.82 points to 4,814.35.
“[This was] after US President Donald Trump escalated economic tensions with China by unveiling on Thursday extensive new trade restrictions that would effectively block $50 billion in Chinese imports from entering the US,” Regina Capital Development Corp. President Marita Limlingan said.
In response, the world’s second largest economy proposed a total of 128 US products, including wine, fresh fruits, dried fruits and nuts, steel pipes, to be potentially slapped with tariffs.
“The Trump administration’s plans to announce new trade restraints against China renewed fears about a potential trade war that could dent economic growth,” Limlingan added.
Garie Ouano, research director at China Bank Securities Corp., said for his part the market was on a technical correction after soaring 1.13 percent in Thursday’s trading.
“The index was forced to close up yesterday so morning trading [today]likely corrected for that. Trade tensions between the US and China were also seen concretizing last night, so that also likely added to the jitters,” Ouano said.
Sectoral results were all in the red, led by property, shedding 1.95 percent. ANGELICA BALLESTEROS