The stock market tumbled Monday on profit taking and the lack of positive surprises on third-quarter earnings.
The Philippine Stock Exchange Index slumped 92.97 points, or 1.3 percent, to 7,016.06 on a value turnover of P3.9 billion. Losers beat gainers, 94 to 59, with 62 issues unchanged.
PLDT Inc., the biggest telecommunications firm, declined 3.2 percent, to P1,355, while Bank of the Philippine Islands, the third-largest lender in terms of assets, fell 3 percent to P79.50.
Alliance Global Group Inc. of tycoon Andrew Tan lost 2.4 percent to P11.32, but BDO Unibank Inc., the biggest bank, advanced 4 percent to P123. BDO said Monday net income climbed 18 percent in the third quarter to P8.4 billion from a year ago, on the solid expansion of core lending and deposit-taking, life insurance and fee-based businesses. Total profit in the first nine months hit P21.5 billion, up 6 percent from the same period last year.
Most Asian markets, meanwhile, rose Tuesday as investors were cheered by Donald Trump’s belief the US and China could reach a “great” trade deal, which helped ease concerns over a report he is preparing to lump tariffs on all Chinese goods.
Shanghai rebounded from early losses to end up one percent, with traders also welcoming a decision by authorities that will make it easier for firms to undertake share buybacks, giving them more scope to prevent sharp falls.
The yuan continued to struggle and hit a 10-year low, with analysts suggesting it could break the 7 to the dollar mark.
“The yuan’s move is in line with the degree of trade tension,” said Ben Kwong, executive director at KGI Asia. “If there’s no more hope for any resolution, then the yuan weakness will continue to be a trend.”
Tokyo closed 1.5 percent higher thanks to a weaker yen, while Sydney jumped 1.3 percent and Seoul rallied 0.9 percent. Wellington, Taipei, Jakarta and Bangkok also posted healthy gains.
However, Hong Kong failed to maintain an afternoon rally and was 0.7 percent lower in the afternoon while Singapore shed 0.4 percent.
Investors started the day on a nervous note after Bloomberg News said the White House is lining up fresh levies if talks between Trump and Chinese President Xi Jinping at a G20 meeting next month are unsuccessful.
It cited unnamed sources as saying a list is being drawn up for a December announcement to hit another $267 billion of goods with levies.
With $250 billion already being targeted, the move would mean all China’s shipments to the United States are taxed. Beijing has said in the past that it will retaliate against any measures, putting the world’s top two economies on course for an all-out trade war.
The story added to skittishness across trading floors, where investors are already fretting over a number of issues including geopolitical tensions, rising US interest rates, slowing growth, Brexit and Italy’s budget standoff with the EU.
However, in an interview aired later on Fox News Trump said that he thinks he can “make a great deal with China,” though he tempered this by saying Beijing was not yet ready. With AFP