Stocks drop to 6-wk low

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    The Philippine Stock Exchange index was down 79.17 points or by 1 percent to 7,818.89.

    The broader all shares index was down 46.64 points or by 0.99 percent to 4,670.76.

    Losers edged gainers 157 to 38 with 41 stocks unchanged. Trading turnover reached P5.72 billion.

    The peso closed at 50.865 to the dollar, slightly up from Wednesday’s 50.87. The currency opened at 50.95, hit a high of 50.85 and a low of 51.03. Trading turnover reached $1.44 billion.

    Broker SB Equities Inc. said the market dropped to a six-week low “as concerns rose that a US- China trade deal may not happen this year, while BSP chief Benjamin Diokno said he was in no rush to push through with any more bank reserve requirement cuts for the year.”

    Luis Limlingan, managing director at Regina Capital Development Corp., said it was also reported that China condemned a US Senate resolution supporting human rights in Hong Kong.

    “The US House passed the Senate bill backing Hong Kong protesters, likely further angering Beijing. The proposal will next go to President Trump, who will need to either sign the law — possibly endangering his trade deal — or risk having his veto overridden. If the bill is passed, HK will be remove as special trade status under US law and sanction officials deemed responsible for human rights abuses and undermining the city’s autonomy,” Limlingan said.

    “The completion of a phase one of any agreement may be pushed back into next year, Reuters reported, citing trade experts and people close to the White House. Subsequently reports from Bloomberg indicated trade talks is progressing,” he added.

    Most actively traded Ayala Land Inc. was down P0.50 to P45.20. SM Prime Holdings Inc. was down P0.80 to P39. International Container Terminal Services Inc. was down P2 to P122. BDO Unibank Inc. was down P3.50 to P154.30. DMCI Holdings Inc. was down P0.28 to P6.70. SM Investments Corp. was steady at P6.70. Ayala Corp. was down P13 to P811.

    Bank of the Philippine Islands was down P2.10 to P90.90. Globe Telecom Inc. was up P37 to P1,937. Jollibee Foods Corp. was up P5.40 to P198.60.