Index dips as US debt default creeps closer

MANILA, Philippines - Local stocks succumbed to market pressure as a possible US debt default crept closer after weekend talks in Washington failed.

The Philippine Stock Exchange index retreated 0.73 percent or 47.10 points to 6,442.70, snapping a two-day climb of the bellwether index. The broader all shares index shed 0.53 percent or 20.98 points to 3,904.81.

“The market continues to remain tentative, reflective of concerns on the US shutdown. Thus making the 6,500 level a tough level to break,” said Jonathan Ravelas, chief market strategist at BDO Unibank Inc.

Financial markets in Asia traded thinly, while major regional markets in Hong Kong and Japan were closed for holidays.

In the local bourse, most counters were in the red, paced by service firms that lost 1.04 percent or 21 points to 1,988.78. Mining and oil bucked the trend as it gained 0.13 percent or 16.04 points to 12,450.49.

The value of shares traded sank to P4.02 billion from P8.83 billion on Friday as investors were hesitant to load up on stocks.

Decliners outpaced advancers, 97 to 51, while 42 stocks did not change.

Most active shares were in the negative territory, led by most-traded PLDT (-1.03 percent) and SM Prime Holdings Inc. (-1.8 percent).

Metrobank added 0.12 percent while Emperador Inc. continued its uptick as it rose 0.72 percent.