The stock market extended its slump Wednesday after a drop in Wall Street overnight, with share prices capping their losses in late buying.
The Philippine Stock Exchange Index fell 70.87 points, or 0.9 percent, to 7,979.95 on a value turnover of P9.6 billion. Losers beat gainers, 117 to 84, with 47 issues unchanged.
PLDT Inc., the biggest telecommunications firm, declined 5.4 percent to P1,305, while Alliance Global Group Inc. of tycoon Andrew Tan retreated 3.3 percent to P13.62.
Jollibee Foods Cop., the largest fast-food chain, lost 2.5 percent to P314, but ISM Communications Corp., a member of the consortium declared by the government as the country’s third major telecom company, surged 9.6 percent to P6.29.
London stocks, meanwhile, rose and the pound rebounded slightly Wednesday in early trading after suffering heavy losses on worries about a possible no-deal Brexit, while Asian equities were mixed ahead of crunch trade talks between China and the United States.
MPs on Tuesday returned to Westminster to vote on a series of proposals dealing with Britain’s exit from the European Union after roundly rejecting Prime Minister Theresa May’s controversial deal two weeks ago.
In a closely watched series of votes, they rejected a plan to put back the date of leaving the EU if no new agreement is agreed by the end of next month.
They then backed a proposal asking May to replace her deal’s so-called backstop provision preventing a hard border with Ireland—a proposal immediately rejected by an EU spokesman.
While observers still expect lawmakers to pass a bill that will avoid a no-deal Brexit—which economists warn could be catastrophic—the latest developments raised the prospect of it happening.
“The pound fell because (the) vote leaves a no-deal Brexit on the table, but it has not collapsed into oblivion because at present there is no alternative to May’s deal and we are not yet at the no-deal do-or-die moment,” said Neil Wilson, chief market analyst at Markets.com.
“Could she really get it through at the last? It would be a remarkable coup.”
But Minori Uchida, Tokyo head of global markets research at MUFG Bank, sounded a note of caution.
“Players are still thinking that a hard Brexit will be avoided in the end, but the optimism is groundless,” he told AFP. “Hard Brexit risks are still here.”
Hong Kong closed up 0.4 percent, Shanghai ended down 0.7 percent and Tokyo lost 0.5 percent.
Wellington, Singapore and Mumbai were all lower but Sydney edged up 0.2 percent and Seoul jumped one percent.
The pound sank around one percent against the dollar and the euro after the votes but it managed to edge back slightly on Wednesday.
Equity markets swung as dealers look ahead to the end of the Federal Reserve’s latest policy meeting later in the day, with hopes for some guidance on its plans for interest rates this year.
Wednesday also sees the start of high-level US-China trade talks, with Beijing’s top trade negotiator due to meet Donald Trump during the two-day gathering. With AFP