Market slips; JG Summit declines

posted March 14, 2019 at 07:30 pm
by  Manila Standard Business
The stock market fell slightly Thursday after a healthy Wall Street lead was offset by more disappointing Chinese economic data.

The Philippine Stock Exchange Index slipped 15.73 points, or 0.2 percent, to 7,750.42 on a value turnover of P5.6 billion. Losers beat gainers, 107 to 77, with 49 issues unchanged.

Conglomerate JG Summit Holdings Inc. of industrialist John Gokongwei lost 2.4 percent to P61.70, while San Miguel Food and Beverage Inc. declined 3.1 percent to P104.10.

First Gen Corp. of the Lopez Group fell 3 percent to P20.85, while Wilcon Depot Inc., a leading home improvement and construction material supplier, dropped 1.5 percent to P15.40.

The pound, meanwhile, retreated from nine-month highs in Asia on Thursday as investors are dogged by Brexit uncertainty, while equities were mixed as a healthy Wall Street lead was offset by more disappointing Chinese economic data.

In another night of drama in Westminster, MPs voted against leaving the European Union without a deal, having rejected Prime Minister Theresa May’s agreement with the bloc for a second time.

The move sent the pound soaring to highs not seen since June, with most observers warning that a no-deal divorce would hammer the British economy.

However, the currency retreated from those highs in Asia, with lawmakers due to vote on whether to extend the March 29 deadline for leaving.

Elsewhere, Tokyo shed earlier gains to end flat and Hong Kong finished up 0.2 percent.

Taipei closed in the red, though Sydney, Seoul, Singapore and Wellington were in positive territory.

May has warned that if MPs do not adopt her pact there could be a lengthy delay to Brexit that would see Britain taking part in European Parliament elections in May.

“The Brexit soap opera continued with... parliament voting, as expected, against leaving the European Union without a deal,” said Jeffrey Halley,  senior market analyst at OANDA. “Sterling inevitably rose overnight as traders piled into the hope-vs-reality trade.”

But he added: “Being irrationally exuberant on the pound could be a dangerous trade at these lofty levels in the short-term.

“No one has actually asked the Europeans what they want, and they may yet impose potentially unpalatable conditions as the price of an (exit) extension.”

On equity markets Shanghai sank 1.2 percent after figures showed factory output grew slower than forecast in the first two months of the year, while retail sales and investment were broadly in line with expectations.

The tepid readings highlighted weakness in the world’s number two economy and reinforced the need for measures by the Chinese government to kickstart growth as the global economy stutters and the US trade war drags on.

The “data means the economy will take a longer time to bottom out as industrial production and consumption are still under pressure despite the rebound in investment”, Liu Peiqian, Asia strategist at Natwest Markets PLC, told Bloomberg News.

Traders will be keeping a close eye on closing remarks at the annual National People’s Congress on Friday for an idea about leaders’ plans. With AFP

Topics: stock market , Philippine Stock Exchange , PSE , Philippine Stock Exchange Index , PSEi , JG Summit
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