Stocks fell Tuesday, after a three-day break, following the selloff in US technology shares last week and as the armed conflict in Marawi City dragged on for a fourth week.
The Philippine Stock Exchange index, the 30-company benchmark, shed 72 points, or 0.9 percent, to close at 7,917.89, as all six major sectors declined.
The heavier index, representing all shares, also tumbled 41 points, or 0.9 percent, to settle at 4,707.42, on a value turnover of P11.2 billion. Losers outnumbered gainers, 132 to 68, while 43 issues were unchanged.
Two of the 20 most active stocks ended in the green, including conglomerate GT Capital Holdings Inc. which climbed 3.5 percent to P1,240 and port operator International Container Terminal Services Inc. which rose 0.2 percent to P106.
Heavy losers included restaurant chain operator Max’s Group Inc. which sank 9.7 percent to P19.20 and Melco Resorts which fell 8 percent to P8.60.
The rebellion in Marawi City led by terror groups Abu Sayyaf and Maute group entered its fourth week, forcing the Philippine military to ask for technical assistance from the US. President Rodrigo Duterte welcomed the US assistance.
The president declared Mindanao under martial law to quell the rebellion, but this caused tour groups to cancel trips to southern Philippines, affecting tourism, airline and hospitality sectors.
On global equity markets, technology firms failed to bounce back from the previous day’s sell-off that was sparked by a rout in the sector on Wall Street Friday. Sony and Sharp were both down in Tokyo while Tencent was marginally up in Hong Kong after Monday’s tumble. Samsung was flat in Seoul.
The losses came after the Nasdaq suffered another slump as Apple and Amazon took a beating, with analysts wondering whether the selling is down to profit-taking or the start of a broad retreat after all US indices hit records last week.
Broader markets fared slightly better after Monday’s steep losses. Tokyo finished marginally lower but Shanghai closed up 0.4 percent and Hong Kong gained 0.3 percent in the afternoon.
Sydney gained 1.7 percent and Seoul jumped 0.7 percent, while Wellington and Taipei were also up.
Traders are now awaiting the end of the Federal Reserve’s latest policy meeting. While another interest rate hike is widely expected, the bank’s post-meeting statement will be scanned for some forward guidance and clues about future movements.
Also, US Attorney General Jeff Sessions is due to testify Tuesday to the Senate Intelligence Committee as it probes Russian meddling in last year’s election and Moscow’s links to under-fire President Donald Trump.
Attention has focused on Sessions as reports swirl that he may have had more meetings with Russian officials during the campaign last year than the two he has informed authorities of. With Bloomberg, AFP