Geopolitical tensions dampen share prices

MANILA, Philippines — The stock market returned from a holiday break on a sour note as geopolitical tensions dampened investor sentiment.

The Philippine Stock Exchange index closed 65.94 points or 0.84 percent lower at 7,788.45 yesterday, its third consecutive session in the negative territory.

The broader All Shares index suffered the same fate as it dropped 41.89 points or 0.87 percent to settle at 4,742.22.

“Geopolitical tensions pushed the equities market in the Philippines much lower. Stocks dropped as political unrest in Argentina and Hong Kong hit investors already nervous about trade tensions,” Regina Capital’s Luis Limlingan said.

Asian markets were heavily affected as well by tensions in Hong Kong, as they finished lower on Tuesday.

In the local shores, most counters were in the red, except for holding firms and mining and oil which which managed to gain 40.59 points and 50.77 points, respectively.

The property index emerged as the biggest loser, shedding 106.62 points, followed by financials and services which declined 1.76 percent and 1.37 percent, respectively.

Decliners crushed advancers, 157 to 53, while 42 stocks were unchanged.

Value turnover, however, improved slightly to P8.58 billion from last Friday’s P6.17 billion.  Net foreign selling amounted to P2.1 billion.