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US factory data pull bourse down

THE stock market slid on Wednesday, mimicking its US and Asian peers, as investors worry over data showing that trade tensions between Washington and Beijing dragged global growth.

The benchmark Philippine Stock Exchange index (PSEi) dropped by 1.67 percent or 129.18 points to end at 7,610.68, while the wider All Shares fell by 1.10 percent or 51.36 points to close at 4,635.68.

“Local shares, along with the rest of Asia, finished lower [on] Tuesday after the Institute for Supply Management’s (ISM) survey of US manufacturers showed [that] President Donald Trump’s trade war was dragging down factories and exporters as global growth languished,” Regina Capital Development Corp. head of sales Luis Limlingan said.

The ISM’s manufacturing index fell 1.3 points to 47.8 percent in September, the lowest point since June 2009. Any reading above 50 indicates growth.

The index’s unexpected drop was another worrying sign for the American economy amid Trump’s trade war with China, slowing consumer spending and weaker sales of major factory-made goods.

“Needless to say it was a bloodbath for the PSEi, having been plagued by a drop in US markets last night, as well as the persistent net foreign selling,” Papa Securities sales associate Gabriel Jose Perez added.

On Wall Street, the Dow Jones plunged by 1.28 percent. The S&P 500 and Nasdaq slid by 1.23 percent and 1.13 percent, respectively.

In Asia, Tokyo fell 0.49 percent, Shanghai slid 0.92 percent, Hong Kong slipped 0.19 percent, Seoul dropped 1.95 percent, Jakarta dipped by 1.37 percent, Singapore decreased by 1.48 percent, Thailand was down by 0.83 percent and Vietnam slid 0.84 percent.

In Manila, all sectors ended in bloodbath with industrial taking the biggest hit at 1.71 percent.

Volume turnover stood at 453.98 million amounting to P6.14 billion.

Losers outnumbered winners, 110-80, while 46 issues were unchanged.


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