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Philippines
Thursday, March 28, 2024

Market declines; Jollibee advances

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The stock market fell again Wednesday in step with the rest of the region, as Asian investors extended a sell-off in global markets after Donald Trump poured cold water on the chances of a trade deal with China by the end of the year.

The Philippine Stock Exchange Index declined 39.25 points, or 0.5 percent, to 7,815.93 on  value turnover of P7.7 billion. Losers overwhelmed gainers, 122 to 58, with 47 issues unchanged.

Metro Pacific Investments Corp., which is into toll roads, water and electricity distribution, hospitals and infrastructure, slumped 10.7 percent to P3.92, while DMCI Holdings Inc. of the Consunji Group dropped 3.8 percent to P6.25.

Megaworld Corp., the biggest lessor of office spaces, fell 3.9 percent to P4.18, but Jollibee Foods Corp., the largest fast-food chain, climbed 3.1 percent to P198.

Markets, meanwhile, were down across the board in Asia.  

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Hong Kong, Tokyo and Sydney all lost more than one percent, while Shanghai, Singapore, Mumbai, Taipei and Bangkok each shed 0.2 percent.  Seoul fell 0.7 percent and Jakarta sank 0.5 percent.

After weeks of broad optimism—and White House claims—that the economic superpowers were close to a partial agreement, the president said he could be happy to wait until after next year’s elections.

The comments, in London ahead of a tense NATO summit that has also fueled geopolitical concerns, sent shivers through trading floors across Europe and New York, where dealers ran for the hills.

“I have no deadline,” Trump told reporters upon his arrival. “In some ways, I like the idea of waiting until after the election for the China deal.”

Investors were already on edge after the US reimposed stiff tariffs on Argentina and Brazil citing currency manipulation, then threatened to hammer France with 100 percent levies over the country’s digital tax.

US Commerce Secretary Wilbur Ross had also warned that more tariffs on Chinese goods planned for December 15 would be imposed if the first phase of trade talks was not completed by then.

Observers noted that Trump has in the past made statements on the issue that he has soon rowed back on, but there is a growing concern that the next round of China levies will be imposed.

A US House of Representatives vote to toughen the US position against China over its treatment of minority Uighurs, calling for sanctions against senior officials, will likely further complicate matters. Beijing said the bill “wantonly smears” it.

The vote comes days after China announced retaliatory measures for Trump’s decision to sign a bill supporting Hong Kong democracy protests.

“While the trade mood music can change very quickly, events over the past 48 hours have forced a reassessment in terms of what to expect before the end of the year,” said Rodrigo Catril at National Australia Bank.

“Tariff man is back and he has brought market volatility back to life.”

“It’s very difficult to have conviction about which way the trade situation will go,” Laura Kane at UBS Global Wealth Management told Bloomberg TV. With AFP

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