Tue. Sep 21st, 2021

By Joann Villanueva 

MANILA – Contraction in US’s April 2020 retail sales worried the markets, resulting in the negative close of the local stock barometer and the peso Monday.

The Philippine Stock Exchange index (PSEi) lost 1.13 percent, or 62.60 points, to 5,479.35 points.

All Shares followed after it fell 0.93 percent, or 31.11 points, to 3,325.50 points.

Most of the sectoral indices also finished the day in the red, led by the Financials, which fell 1.90 percent.

Holding firms slipped by 1.82 percent, Industrial, 1.54 percent; Services, 0.55 percent; and Mining and Oil, 0.16 percent.

Only the Property index gained during the day after it rose 0.27 percent.

Volume totaled to 445.94 million shares amounting to PHP3.95 billion.

Losers led gainers at 141 to 56, while 32 shares were unchanged.

Luis Limlingan, Regina Capital Development Corporation head of sales, cited reports about the record 16.4-percent contraction of US retail sales last April as the primary factor for the big drop in the main equities index Monday.

Another factor is the news saying the Trump government will prevent shipments of semiconductors to China’s Huawei Technologies, which increased worries on the trade war between the world’s largest economies, he said.

Federal Reserve Chairman Jerome Powell is optimistic for the recovery of the US economy in the second half of this year if there will be no second wave of Covid-19 cases in the US.

The peso ended the day at 50.9 to a US dollar, weaker than its 50.76 close Friday last week.

It opened at 50.7, a depreciation from its 50.46 start in the previous session.

Strongest level for the day stood at 50.67 while the weakest was at 50.915, resulting in a 50.78 average.

Volume totaled to USD888.2 million, higher than the USD849.9 million at the end of last week. (ia/PNA)

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