Negative spillover dampens market

Local shares slipped on the first trading day of the week with low-value turnover due to negative spillover from the United States markets last Friday.

The benchmark Philippine Stock Exchange index declined by 99.61 points to 5,832.58 on Monday, 1.68 percent lower than Friday’s close.

Market participation was weak with a net value turnover of P2.34 billion, the lowest figure year-to-date.

“Wall Street dropped last Friday as concerns over higher interest rates have strengthened following the strong US September jobs data,” Philstocks Financial Inc. assistant manager for research and online engagement Claire Alviar said.

“If the Fed remains 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,” she added.

Turnover low

Shares slipped given the shortened trading week in the US in observance of a federal holiday.

The sentiment was also dragged by the performance before the weekend as US equities fell as traders evaluated September’s jobs report, which showed the unemployment rate continuing to decline and sparked an increase in interest rates.

Friday’s losses trimmed the gains for what started out as a big comeback week for stocks.

There is also a slew of speaking engagements from the Fed throughout the week.

Oil prices jumped to a 5-week high, carried higher by the OPEC’s largest supply cut since 2020.

Brent crude was up $3.48, or 3.7 percent, to $97.90 a barrel. US West Texas Intermediate or WTI, crude gained $4.18, or 4.7 percent, to $92.63.

All sectors were in the red territory led by Holdings and Miners, which dropped 2 percent and 1.89 percent, respectively.

In the main index, Globe Telecom Inc. was the sole gainer, the share of which went up by 0.46 percent while Converge ICT Solutions Inc. was the biggest loser after share dropped 6.15 percent.

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