Index retreats on dismal China trade data

MANILA, Philippines - Share prices sagged anew yesterday as disappointing Chinese trade data dragged local stocks to its third straight day of losses.

The Philippine Stock Exchange index (PSEi) fell 0.51 percent, or 35.52 points, to settle at 6,891.30, while the broader All Shares index shed 0.39 percent, or 15.50 points, to 3,949.51.

August exports of China, the world’s second largest economy, came out lower than expected, dampening the mood of most markets in the region.

“With the major markets in East Asia dragged lower by fresh and still weak export numbers from China (again), the local market joined its peers in the narrower Southeast region in the red,” said Justino Calaycay Jr., analyst at Accord Capital.

Local indexes were covered in red yesterday, led by the mining and oil firms which declined 1.11 percent and financial companies which took a 1.06 percent blow.

Market breadth was negative as decliners pummeled advancers, 100 to 63, while 44 stocks were unchanged. Value turnover improved slightly from the previous day by remained thin at P4.73 billion.

“It is reasonable to expect the market to continue trading with a negative bias even as it seeks to find a firmer footing on the shifting sands amid expectations the domestic economy will continue to grow,” Calaycay said.