PHL stocks slip to 7,000-level on China weakness, US rate hike worries

MANILA, Nov. 10 (PNA) — Local share prices fell for the fifth day but stayed above 7,000-level on Tuesday, tracking the movement of markets in the region, as investors worried over China’s weakness and the expected liftoff in the United States (US) interest rates.

The benchmark Philippine Stock Exchange index (PSEi) lost 70.08 points or 0.99 percent to 7,000.11 from previous day’s 7,070.19 close.

”Tuesday’s market action –across the entire Asian region – magnifies the impact that China has on the global economy. That and the impending hike in US interest rates after decades of a record low regime,” said Justino Calaycay Jr., analyst at Philstocks Financial Inc. in a report.

He noted that investors are now in the process rebalancing their portfolio in line with the diverging expectations in monetary policy stance between the US and the rest of the world.

But while the general view tends to be rather pessimistic, Calaycay expects a market rebound within this week.

”The sustainability of this rebound however rests on how the rest of the earnings cycle comes out –that and the third-quarter GDP (gross domestic product) which is expected towards the final week of the month,” he added.

Almost all counters declined over one percent.

Volume was thin at 533.58 million, value traded was Php6.38 billion.

Decliners swamped advancers, 128 to 39, while 48 issues unchanged. (PNA)