Share prices ended lower Wednesday tracking overseas leads while the peso closed up.
This developed as the Philippine Stock Exchange (PSE) said it is looking to tweak its rules on trading suspension during times of extraordinary conditions like system breakdown and storms.
In yesterday’s trading, the PSE index was down 12.63 points, a 0.2 percent drop to 6,268.27.
The broader All Shares index was down 5.98 points or 0.18 percent to 3,385.40.
Losers edged gainers 92 to 73 with 61 stocks unchanged. Trading turnover reached P5.12 billion.
The peso closed at 56.70 to the dollar, up from 56.746.
The currency opened at 56.72 and hit a high of 56.68 and a low of 56.775. Trading turnover reached $877.55 million.
Asian emerging currencies were broadly steady on Wednesday following better-than-expected Chinese economic data, but investors held off on making large bets as tensions flared in the Middle East.
Risk aversion increased as tensions in the Middle East escalated after about 500 Palestinians were killed in a blast at a Gaza hospital, which Israeli and Palestinian officials blamed on each other.
The news contributed to a surge in oil prices as investors worried about potential supply disruptions.
Adding to market jitters, Jordan cancelled a summit with US President Joe Biden, Egyptian and Palestinian leaders.
“The geopolitical tensions are still very high and difficult to sort in the near-term. Moreover, the fact that US data continues to be quite strong means continuing upside risks on Asian assets,” Alvin Tan, Head of Asia FX strategy at RBC Capital Markets said.
Claire Alviar, analyst at Philstocks Financial Inc., said investors are concerned about the escalating Israel-Hamas conflict’s impact on oil prices, potentially leading to an increase in domestic oil prices if global prices continue to climb.
“This situation is anticipated to be unfavorably received by investors, especially in light of our elevated inflation,” she said.
Most actively traded Puregold Price Club Inc. was down P0.15 to P29.45. DMCI Holdings Inc. was down P0.24 to P10.30. International Container Terminal Services Inc. was down P0.80 to P214.20. SM Investments Corp. was down P4.50 to P812.50. Ayala Land Inc. was up P0.45 to P29.75. Aboitiz Power Corp. was up P0.10 to 36.95. Semirara Mining and Power Corp. was up P0.05 to P35.15. SM Prime Holdings Inc. was down P0.65 to P31.20.
Universal Robina Corp. was down P1.90 to P113. Nickel Asia Corp. was down P0.21 to P5.72.
Meanwhile, the PSE said it plans to change the trigger for market-wide halt when brokers that account for more than 50 percent of the average daily trading value, cannot access the trading system, due to trading system problems like server failure, network/link problems, or application errors.
The PSE said that calculating brokers’ contribution to the daily turnover is exclusive of block sales and will be based on trades done in the past six months.
This is a shift from the previous threshold of one-third of the all brokers that cannot access the trading system.
The PSE said this was decided on after a review of the market data for the previous years, including a survey of seven stock markets within Asia – Indonesia Stock Exchange, Stock Exchange of Thailand, Singapore Exchange, Bursa Malaysia, Korea Exchange, Hong Kong Exchanges and Clearing Limited, and Japan Exchange Group.
The PSE is soliciting comment from market participants on the planned change up until October 24. Ruelle Castro
