Washington is suggesting pushing back the trade deal with Beijing until next year drove market sentiment down, sending the local bourse to the red territory for second straight day.
The benchmark Philippine Stock Exchange index (PSEi) dropped by 0.50 percent or 39.25 points to end at 7,815.93 while the wider All Shares slipped by 0.50 percent or 23.39 points to finish at 4,657.81.
“With a trade risk still on the table, and tension mounting on a bill signed against human rights violation, equities locally and abroad tanked after US President Donald Trump suggested he may want to delay a trade deal with China until after the 2020 presidential election,” Regina Capital Development Corp. head of sales Luis Limlingan said.
After weeks of broad optimism — and White House claims — that the economic superpowers were close to a partial agreement, the US president said he could be happy to wait until after next year’s elections.
“I have no deadline,” Trump told reporters. “In some ways, I like the idea of waiting until after the election for the China deal.”
Philstocks Financial Inc., in a market comment, agreed, saying: “US President Donald Trump’s trade delay hints against China pulled the local market down.”
Papa Securities sales associate Gabriel Jose Perez, meanwhile, said recent development on the US-China trade war also had a spillover effect on other regional markets.
Wall Street was down again. Dow Jones, S&P 500 and Nasdaq plunged 1.01 percent, 0.66 percent and 0.55 percent, respectively.
In Asia, Tokyo plummeted 1.05 percent, Shanghai dipped 0.23 percent, Hong Kong declined 1.12 percent, Seoul slipped 0.73 percent, Jakarta fell 0.58 percent, Singapore lost 0.44 percent, and Thailand slid 0.18 percent.
Vietnam, meanwhile, gained 0.97 percent.
In Manila, all sectors were in the red, except for financials and industrial that rose by 0.57 percent and 0.42 percent, respectively.
Volume turnover stood at 641.49 million amounting to P7.67 billion.
Decliners led advancers, 122-58, while 47 issues were unchanged.
WITH A REPORT FROM AFP