PSE down for 3rd straight day

The local stock market continued to decline on Tuesday, lowering by 1.49 points, or 0.02 percent, to close at 6,433.24 as fears of a global recession linger.

Sectoral indices were split, with Properties leading the gainers, increasing by 0.60 percent, followed by the Services, up by 0.38 percent, and Holding firms by 0.10 percent.

Meanwhile, Miners, down by 1.76 percent, lost the most.

Gokongwei-led Universal Robina Corporation remains at the bottom, dropping by 6.57 percent.

Rebounded then dipped

Stock analysts say local shares initially rebounded strongly in the early mornings but were affected by negative cues from Wall Street overnight.

According to Luis Limlingan, head of sales at Regina Capital Development Corp., Wall Street likewise began the trading week “in the red” as global markets faced a sell-off.

He said that the recently released weaker-than-expected July jobs report raised concerns on the possibility of the Federal Reserve lagging in cutting rates, increasing recession fears.

“These concerns rippled through global markets, with Japan’s Nikkei 225 index experiencing its worst daily decline since Black Monday in 1987,” he said in a Viber message.

Keeping interest rates elevated

Meanwhile, the dim sentiment was also caused by Bangko Sentral ng Pilipinas Governor Eli Remolona's statement on seeing room to keep interest rates elevated amid an “evolving inflation condition,” said Philstocks Financial, Inc. research and engagement officer Mikhail Plopenio.

“The inflation data for July, which came in at 4.4 percent, breaching the government’s target range of 2 percent to 4 percent, was also digested,” he added.

The net market value turnover was P4.59 billion, with 97 Decliners exceeding 84 Advancers and 56 names unchanged.

The peso closed at P57.81 from a dollar.