The stock market fell Tuesday to erase gains in early trading, with companies linked to casino operations taking a hit after President Rodrigo Duterte said he will not allow any casino to be built in world-famous Boracay Island despite the approval from Philippine Amusement and Gaming Corp.
The Philippine Stock Exchange Index slipped 10.98 points, or 0.1 percent, to 7,934.68 on a value turnover of P7.6 billion. Losers overwhelmed gainers, 137 to 70, with 45 issues unchanged.
Bloomberry Resorts Corp., which operates a casino on a reclaimed part of Manila Bay, dropped 3 percent to P13.10, while Leisure & Resorts World Corp., which is teaming up with Macau’s Galaxy Entertainment Group and Leisure to develop a casino in Boracay, slumped 10 percent to P5.35.
GT Capital Holdings Inc. of tycoon George Ty tumbled 3.5 percent to P1,100, while Bank of the Philippine Islands, the third-biggest lender in terms of assets, declined 2.9 percent to P105.
The rest of Asian markets rallied Tuesday after Chinese President Xi Jinping eased worries over a simmering US trade conflict by promising new measures to open his country’s massive economy “wider and wider.”
In a closely watched speech at the Boao Forum—dubbed the Asian Davos—he pledged a “new phase of opening up,” adding that Beijing “does not seek a trade surplus” and wants to boost imports.
After starting the day cautiously, dealers pounced on the comments as a sign that a possible trade war between the world’s top two powers can be averted.
Shanghai climbed 1.7 percent and Hong Kong jumped 1.9 percent.
Tokyo added 0.5 percent, Sydney—where a number of firms are listed that rely on China trade—rose 0.8 percent, Singapore put on 0.6 percent and Seoul added 0.3 percent.
There were also healthy gains in Wellington, Taipei and Indonesia.
Markets have been roiled in recent weeks as the White House has announced a series of tariffs mostly on Chinese goods as part of his “America First” protectionist agenda, fueling fears of potentially devastating tit-for-tat measures that could hammer the global economy.
China’s massive surplus with the US is a key complaint of Trump’s who accuses the country of unfair trade practices that hurt American jobs.
His latest measures on Friday battered US stocks, though hopes the issue can be resolved saw Asia post gains on at the start of this week.
But on Tuesday Xi said he would move to liberalize automobile investment, significantly reduce tariffs on cars this year and protect intellectual property—all areas that have been high on the list of demands by Washington.
The measures have been high on Trump’s list of grievances against China.
“Xi’s speech sends a positive signal to the market since he backs globalization and the opening up of China market,” Linus Yip, a strategist at First Shanghai Securities, told Bloomberg News.
“Investors were very worried about trade disputes, while his speech calms the nerves a lot. The concern about trade disputes in near-term are still here however, since what Xi pictures is a very long-term picture.” With AFP