Stocks fell Monday, ahead of President Rodrigo Duterte’s State-of-the-Nation Address later in the afternoon and as investors await a US Federal Reserve policy meeting.
The Philippine Stock Exchange index, the 30-company benchmark, shed 27 points, or 0.3 percent, to close at 7,962.64, as five of the six major sectors declined.
The heavier index, representing all shares, also went down 12 points, or 0.3 percent, to settle at 4,758.67, on a value turnover of P5.8 billion. Losers outnumbered gainers, 109 to 100, while 50 issues were unchanged.
Thirteen of the 20 most active stocks ended in the green, led by aviation company MacroAsia Corp. which jumped 15 percent to P1.42, after it announced a plan to exit mining and water to focus on its core business.
Philippine Estates Corp. advanced 5.9 percent to P0.54, while DMCI Holdings Inc. climbed 1.9 percent to P15.90. JG Summit Holdings Inc. rose 1.3 percent to P78.50. Metropolitan Bank & Trust Co. rebounded 1.3 percent to P88, after it plummeted last week on reports that it was hit by an internal fraud perpetuated by a senior executive.
Meanwhile, Asian markets mostly rose Monday, but uncertainty surrounding Donald Trump’s presidency continues to drag on sentiment, with Wall Street’s three main indexes ending last week on a negative note.
The single currency extended last week’s rally against the greenback after European Central Bank boss Mario Draghi said policymakers would address its vast stimulus program by the autumn, fueling speculation they would start winding it in.
In afternoon trade Monday, the euro bought $1.1668, around two-year highs, with analysts predicting it could break above the $1.1714 mark set in mid-2015.
The dollar was also well down against the yen and pound. The unit has struggled as Trump’s travails – from a probe into his election campaign’s links to Russia to failure to push through health care reforms –dampen expectations he will be able to pass his much-vaunted economic agenda.
“Factoring in the expanding US political sinkhole, which is weighing on broader (dollar) sentiment, it’s unlikely the market has run out of steam,” Stephen Innes, head of Asia-Pacific trading at OANDA, said in a note.
Traders will be watching the Fed’s latest policy meeting, which ends on Wednesday, hoping for some guidance on its plans for raising interest rates. Expectations for further increases have been tempered in recent weeks as inflation remains tepid and Trump’s woes grow.
On equities markets, Tokyo’s Nikkei index ended down 0.6 percent as exporters were hit by the strong yen, while Sydney also shed 0.6 percent and Singapore was 0.1 percent off.
However, other markets managed to recover early losses, with Seoul 0.1 percent up, while Taipei and Wellington were each 0.2 percent higher.
There were also gains in Bangkok and Jakarta.
Hong Kong was up 0.4 percent in the afternoon—having risen for nine of the previous ten trading days. Shanghai finished 0.4 percent higher.
Michael McCarthy, chief market strategist at CMC Markets, said: “Japan and the US releases could dominate market thinking.
“These releases will occur alongside the busiest week of the US corporate reporting season so far and an interest rate decision from the US Federal Reserve. With AFP, Bloomberg