The stock market plunged Wednesday, weighed down by a government report showing a widening trade gap in August that could exert further downward pressures on the peso.
The Philippine Stock Exchange Index lost 82.76 points, or 1.2 percent, to a 21-month low of 6,976.62 on a value turnover of just P2.8 billion. Losers overwhelmed gainers, 131 to 56, with 45 issues unchanged.
The Philippines incurred a trade deficit of $3.51 billion in August and $26 billion in the first eight months, as imports continued to outpace exports, data from the Philippine Statistics Authority show.
Merchandise exports grew 3.1 percent in August to $6.16 billion, while imports climbed 11 percent to $9.68 billion from $8.72 billion.
Now Corp., which is bidding to become the third major telecommunications company, slumped 30.6 percent to P5.20, while conglomerate San Miguel Corp. fell 3.8 percent to P161.70.
Aboitiz Power Corp., a major producer of electricity, lost 3.8 percent to P32.70, while Jollibee Foods Corp., the biggest fast-food chain, dropped 2.5 percent to P246.
The rest of Asian stocks were mostly trading up Wednesday, after a volatile session for US equities and as yields on Treasury bonds retreated from a seven-year peak.
Japanese shares edged higher at the close, ending a four-day run of losses, with purchases making up for the higher yen’s dampening impact.
“After four days of falling… Japanese shares are in a good place for bargain-hunting buys,” Yoshihiro Ito, chief strategist at Okasan Online Securities, said in a commentary.
Hong Kong was up 0.3 percent in afternoon trading while Shanghai closed 0.2 percent higher, both moving back into positive territory for a second day after Monday’s rapid sell-off.
There were also gains in Mumbai, with markets leaping 1.2 percent after closing at a six-month low on Tuesday, and aviation stocks seeing a boost after domestic media reports that New Delhi may reduce a jet fuel tax.
“(Indian) markets will continue to be volatile in the coming days and will offer great long-term buying opportunities,” Soumen Chatterjee, head of research at Guiness Securities, told Bloomberg News.
There was growth in in other Asian markets, with Taiwan up 0.1 percent, Sydney up 0.1 percent and Bangkok rising 1.3 percent.
But global markets remained cautious on several fronts.
US and European markets meandered on Tuesday, with investors nervous after 10-year US Treasury bond yields surged above 3.0 percent and the IMF sounded a cautious note on the global economy.
On Wall Street, the Dow closed down 0.2 percent at 26,430.57 with US shares facing another day of pressure over higher interest rates.
“Markets continued their tenuous voyage through a pothole-encumbered landscape, dealing with the fragile US-China relations… and Brexit developments providing more ambiguity,” said Stephen Innes, head of Asia-Pacific trading at OANDA.
“It’s no wonder investors have a high level of misgivings.” With AFP