The stock market slipped Monday on lingering worries over the worsening US-China trade war.
The Philippine Stock Exchange Index fell 22.08 points, or 0.3 percent, to 7,725.01 on a value turnover of P5.5 billion. Losers beat gainers, 99 to 83, with 56 issues unchanged.
PLDT Inc., the biggest telecommunications firm, declined 5 percent to P1,282, while BDO Unibank Inc., the largest lender in terms of assets, lost 1.3 percent to P132.
Jollibee Foods Corp., the biggest fast-food chain, fell 1.4 percent to P274, but Security Bank Corp., the sixth-largest lender in terms of assets, rose 2 percent to P173.80.
The rest of Asian markets made a tepid recovery Monday as investors sought to shrug off a difficult week dominated by anxiety over the fractious US-China trade war.
As the two economic superpowers ready for a prolonged battle, with no date set for tariff negotiations to resume, all eyes were on US President Donald Trump’s visit to Japan, where he held formal talks with Prime Minister Shinzo Abe on Monday.
Ahead of the talks, Trump hit out at the “tremendous imbalance” in trade with the US ally, but said he was confident that things would “work out over a period of time”.
He also said that there was a “very good” chance of clinching “a great trade deal” with China “sometime in the future.”
On the geopolitical front, the US leader reiterated his criticism of the nuclear deal with Iran but emphasized that Washington was “not looking for regime change” and was open to holding negotiations with Tehran.
In Asian markets, Tokyo rose 0.3 percent, while Shanghai closed 1.4 percent higher. But Hong Kong and Singapore each lost 0.2 percent.
The cautious recovery in Asia came after the Dow retreated for the fifth straight week, its longest losing streak since 2011.
Investors were expected to welcome a three-day weekend that saw US and UK markets closed on Monday, with the resignation of British Prime Minister Theresa May raising the likelihood of a no-deal Brexit.
The strong show of support for the Brexit Party in the European elections over the weekend will do little to ease those fears, analysts said.
“The problems that Theresa May faced will not go away with a new leader. In fact, they may get worse, because this weekend’s election shows a large proportion of voters out there are still adamant they want a Brexit and don’t seem minded to negotiate with Brussels,” said OANDA senior market analyst Jeffrey Halley.
The results of the vote “should highlight how fractured both Parliament and the British electorate remain. The new Prime Minister will face the same issues—including a non-majority in Parliament-–as his or her predecessors,” Halley added.
In a further blow to Brussels, the far-right National Rally party led by Marine Le Pen made a strong showing in France, leaving pro-EU President Emmanuel Macron trailing.
Oil prices made a lukewarm comeback after suffering a sudden rout last week due to a surprise increase in US crude and gasoline inventories. With AFP