Stocks fall on weaker US bourses

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The local stock market fell as investor sentiment was weighed down by weaker US bourses last Friday.

The main index dropped 99.61 points or 1.68 percent to close at 5,832.58 with Conglomerates leading the retreat across the board. Volume was anemic at 325 million shares worth P2.53 billion as losers trounced gainers 158 to 36 with 37 unchanged.“Philippine shares slipped with very low value turnover given the shortened trading week in the U.S. today in observance of a federal holiday there today Oct. 10,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He added that, “Sentiment was also dragged by the performance before the weekend – U.S. equities fell on Friday as traders evaluated September’s jobs report, which showed the unemployment rate continuing to decline and sparked an increase in interest rates.” Philstocks Financial Assistant Research Manager Claire Alviar said “The local bourse declined amid negative spillover from the US markets last Friday. Wall Street dropped last Friday as concerns over higher interest rates have strengthened following the strong US September jobs data.”

She explained that, “If the Fed will remain hawkish, the US dollar may get stronger while the peso may weaken further. Moreover, rising oil prices which may upwardly pressure inflation weighed on sentiment.”

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