Shares drop

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    Share prices ended lower Wednesday as investors turned to risk-off mode after the overnight decision of US President Donald Trump to stop negotiation for a new stimulus in his country.

    The Philippine Stock Exchange index was down 42.75 points to 5,867.88, a 0.72 percent drop.

    The broader all shares index was down 15.83 points to 3,527.90, a 0.45 percent drop.
    Gainers edged losers 101 to 92 with 48 stocks unchanged. Trading turnover reached P7.11 billion.

    The peso closed at 48.39 to the dollar, down from 48.38 on Tuesday.

    The currency opened at 48.48 and hit a high of 48.38 and a low of 48.50. Trading turnover reached $584.4 million.

    Luis Limlingan, managing director at Regina Capital Development Corp., said the market’s drop was a result of the US President Donald Trump saying he would end negotiations on a new fiscal stimulus package, “sending jitters into investors who hoped Washington lawmakers would strike a deal soon.”

    “Trump rejected mounting Fed calls for another stimulus package and broke off White House negotiations with Nancy Pelosi until after the November election,” he said.

    Reuters said the PSE’s drop “led declines across Asia’s emerging stock markets.

    Shares in Kuala Lumpur and Jakarta were down 0.3 percent and 0.5 percent, respectively as markets tracked falls on Wall Street after Trump said further aid for the world’s biggest economy would have to wait until after November election.

    “Asian markets will likely spend the day digesting the implications of a no US stimulus agreement,” said Jeffrey Halley, a senior Asia market analyst at OANDA.

    Asia’s other emerging currencies were flat to slightly higher against the dollar, with the greenback holding steady from overnight and not seeing further buying.

    Most actively traded Dito CME Holdings Corp. was down P1.04 to P5.77. Metro Pacific Investments Corp. was up P0.07 to P3.90. Now Corp. was down P0.75 to P4.23.

    International Container Terminal Services Inc. was down P3.70 to P113.90. PLDT Inc. was down P40 to P1,299. Ayala Land Inc. was down P0.30 to P29.70. SM Prime Holdings Inc. was down P0.30 to P29.30. Puregold Price Club Inc. was down P1.75 to P44.10. ABS-CBN Corp. was up P4.50 to P13.50. BDO Unibank Inc. was up P1.45 to P88.