HK unrest drags PHL shares

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The ongoing political unrest in Hong Kong and the US-China trade war have dragged the share prices on the Philippine Stock Exchange on weak note Tuesday as foreign funds sold off positions due to the said incidents.

In a statement, AAA Equities research head Chris Mangun said that the bellwether PSEi lost 65.94 points or 0.84% to 7,788.45 at the closing bell. The broader All Shares shed 41.89 points or 0.88% to 4,742.22.

“Foreign fund outflows continue to weigh heavily on our market as the world sentiment on equities get weaker,” Mangun said.

Earlier on Tuesday, the PSEi suffered a 2.60% drop at the noon recess.

“As external factors continue to get worse, foreign investors may take more risk off the table and this will send our market lower,” Mangun noted. “Net-foreign selling today was a massive P2.1 billion.”

Foreign funds bought P3.416 billion and sold P5.532 billion for a net selling position of P2.116 billion and according to Mangun, the down trend continues as the general investor sentiment continues to sour despite better corporate earnings.

In Asian markets and overnight on Wall Street, the sentiment was weak due to increasing signs that the United States and China will not quickly resolve their year-long trade war and were hit with further turbulence after protesters managed to close down Hong Kong’s airport on Monday.

“Riots in Hong Kong have escalated with protestors flooding the airport causing a major shutdown,” Mangun said, adding that buyers came in later in the trading session and help trim some of the losses earlier in the day.

“Last-minute buying saved it from a total meltdown as the PSEi had the worst performance earlier today,” noted Mangun.

More than 1.824 billion shares valued at P8.578 billion, changed hands. Decliners led advancers, 157 to 53, and 42 issues were unchanged.

 

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