The stock market sank again Thursday as traders resume their consolidation mode, ignoring the gains in the region.
The Philippine Stock Exchange Index plunged 110.89 points, or 1.4 percent, to a one-year low of 7,682.24 on a value turnover of P11.8 billion. Losers overwhelmed gainers, 171 to 58, with 31 issues unchanged.
Blue chips led the losers, with market heavyweight PLDT Inc., the biggest telecommunications firm, slumping 3.5 percent to P1,370. Jollibee Foods Corp., the largest fastfood chain, tumbled 3.1 percent to P285.
Conglomerate JG Summit Holdings Inc. of industrialist John Gokongwei fell 3.9 percent to P60, while Alliance Global Group Inc. of tycoon Andrew Tan sank 4.9 percent to P13.50.
The rest of Asian markets, meanwhile, enjoyed another day of gains Thursday as energy firms tracked a surge in oil prices, while fears over Syria and a possible China-US trade war eased.
Fresh hopes that Donald Trump and North Korea’s leader Kim Jong Un will hold a historic summit within months also provided some much-needed optimism.
Both main crude futures rallied almost three percent Wednesday on the back of data showing a drop in US stockpiles—indicating improved demand—and expectations that a Russia-Opec output cap deal will be kept in place.
Adding to the gains was talk that Opec kingpin Saudi Arabia wanted to see crude at around $80 a barrel as it prepares for a gigantic listing of part of its state oil company. Tensions in the oil-rich Middle East are also keeping prices elevated.
Brent and WTI, which are now sitting at levels not seen since the end of 2014, edged up further in Asia.
Energy firms across the region were boosted, with Hong Kong-listed PetroChina up more than five percent and CNOOC 3.5 percent higher. Woodside Petroleum added one percent in Sydney and Inpex put on a similar amount in Tokyo.
“That surprise draw on inventories in the US appears to have changed the game despite the fact that we did see an increase in US production. The market has looked past that,” said Michael McCarthy, an analyst at CMC Markets in Sydney.
“With that increasing demand and some concerns about (the) supply side, a number of traders have been blindsided by this recent move.”
On equity markets, Tokyo ended 0.2 percent higher, while Hong Kong and Singapore each gained more than one percent and Shanghai added 0.8 percent. Sydney and Seoul both climbed 0.3 percent.
Taipei, Wellington and Jakarta were also higher.
The positive trading environment is a far cry from the unease felt at the start of the week after US-led strikes on Syrian targets—in response to an alleged chemical attack—sparked worries of a confrontation with Russia, which is an ally of the Damascus regime.
However, reports have suggested Russian President Vladimir Putin is looking to ease tensions as he faces fresh sanctions.
China’s announcement of a timetable to remove restrictions on foreign ownership in its car market, the world’s biggest, also lifted optimism that a simmering trade war with the United States can be avoided.