Stocks inch lower on US credit rating downgrade

PHILIPPINE SHARES slipped on Monday as investors monitor the potential impact of Moody’s move to downgrade the United States’ credit rating.

- — Sheldeen Joy Talavera with Reuters

The bellwether Philippine Stock Exchange index (PSEi) inched down by 0.16% or 10.69 points to close at 6,454.84, while the broader all shares index dropped by 0.09% or 3.71 points to 3,765.66.

“The PSEi ended the trading session slightly lower, reflect-ing the local market’s tepid reaction to Moody’s credit rat-ing downgrade of the US,” Juan Paolo E. Colet, managing direc-tor at China Bank Capital Corp., said in a Viber message. “While the downgrade itself was not a surprise, investors are wait-ing to see whether the move triggers a more adverse move-ment in US Treasury yields that could potentially unsettle equity markets.”