The stock market fell Tuesday in listless trading, with some skepticism over the China-US trade deal seeping in, while oil prices pushed higher after Washington flagged harsh sanctions on key producers Iran and Venezuela.
The Philippine Stock Exchange Index slipped 11.85 points, or 0.2 percent, to 7,646.20 on a value turnover of P4.8 billion. Losers beat gainers, 110 to 78, with 45 issues unchanged.
Casino operator Bloomberry Resorts Corp. declined 3.6 percent to P11.80, while SM Prime Holdings Inc. of retail tycoon Henry Sy Sr. lost 1.5 percent to P37.25.
Metro Pacific Investments Corp., which is into toll roads, water and electricity distribution, power generation and hospitals, fell 2.1 percent to P4.75, while BDO Unibank Inc., the biggest lender in terms of assets, dropped 1.4 percent to P127.60.
Asian investors, meanwhile, stepped back Tuesday after the previous day’s rally.
World markets fizzed Monday after US Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He said they had agreed to pull back from the brink of a potentially damaging trade war.
However, while fears about the tariffs spat had roiled equities for months, investors were unable to kick on as they take a closer look at Sunday’s pact, which offered few details.
Analysts also pointed out the lack of agreement over intellectual property—a major stocking point for Donald Trump—as well as several other sectors.
Also tempering the optimism are worries about higher US interest rates and geopolitical issues.
“Markets are going through a bumpy ride,” Bank of Singapore Investment Strategist James Cheo told Bloomberg Television.
“This trade truce is still in the early days. It’s really a ceasefire, it’s not a peace treaty as yet. The implementation details are still unclear. There is still some caution among Asian investors.”
Tokyo finished 0.2 percent off, Sydney slipped 0.7 percent and Taipei shed 0.3 percent. There were also losses in Wellington, Bangkok and Singapore. Shanghai ended with minor gains.
Hong Kong and Seoul were closed for public holidays.
Oil prices extended Monday’s gains of around one percent as the US unveiled its sanctions plans.
Secretary of State Mike Pompeo warned Tehran would be hit with the “strongest sanctions in history” while also warning European firms they were at risk if they continued to work with Iran, toughening up Washington’s policy line leaving the nuclear deal this month.
That came as Venezuela was targeted with fresh measures after the re-election of President Nicolas Maduro, which the US branded a “sham.”
Trump signed an executive order barring Americans from buying debt from Venezuela, cutting off an important source of revenue for the cash-starved regime. The measures did not target the country’s crucial oil exports, though analysts said they would likely be in the firing line at some point.
The moves put upward pressure on crude, which had been drifting after last week’s healthy gains, which have sent prices to highs not seen since late 2014.