PSEi tumbles as China worries escalate

MANILA, Philippines – Local share prices took a dip yesterday as regional markets continued to retreat due to escalating worries on China’s economy.

The Philippine Stock Exchange index (PSEi) fell 0.31 percent, or 21.23 points, to close at 6,813.90, while the broader All Shares index declined 12.26 point to settle at 3,913.55.

After bucking regional downtrends on Tuesday, the local stock market lost its immunity yesterday as China’s currency weakened further.

Analysts said the yuan’s weakness has intensified worries on China’s slowing economy.

“Weekly technicals now show weak sell signals which will put more downward pressure on prices for the rest of the week. On the positive side, prices are still above 6,800 breakout point so rally hopes are still intact,” said Luis Limlingan, managing director of Regina Capital Development Corp.

Locally, the bourse was covered in red with four of the six sector indices suffering losses. The property index took the biggest blow, declining 1.42 percent.

Services and industrial firms, meanwhile, posted nearly .50 percent gains, respectively.

Market breadth remained negative as decliners pummeled advancers, 101 to 68, while 35 stocks did not change.

Value turnover was thin at P4.26 billion.