Index retreats on Wall St’s sharp drop

MANILA, Philippines - The sharp decline in the US markets rubbed off on local equities, which dropped 0.41 percent or 26.91 points to settle at 6,587.49, while the broader all shares index fell 0.25 percent or 9.76 points to 3,959.31.

“Momentum in the US fell sharply and that snowballed to the broader market indices,” Miguel A. Agarao, an analyst at Wealth Securities Inc., said in a phone interview.

Agarao said the main index was dragged down by Wall Street’s retreat on Friday and yesterday.

Agarao said the bellwether index also weakened as it traded at the 6,600 resistance level that is prone to pullbacks.

Asian stocks, driven by an expected stimulus in world’s second largest economy China, ignored the decline in US. Hong Kong’s Hang Seng index rose 0.98 percent or 219.82 points to 22,596.97.

At home, most counters were in the red, paced by the property sector that dropped 0.79 percent or 20.72 points to 2,589.75. Mining and oil gained 0.23 percent or 33.97 points to 14,756.27.

Investor participation improved as value turnover reached P7.56 billion compared with P6.95 billion on Monday. Advancers slightly outplayed decliners, 81 to 79, while 53 stocks did not change.

Agarao said the market might consolidate in the near term with a downward bias. Financial markets are closed today for the Araw ng Kagitingan holiday.