Stocks retreated Friday, after a two-day rally boosted by the Federal Reserve’s interest rate hike, as the rout in oil prices returned to center stage.
The Philippine Stock Exchange index, the 30-company benchmark, lost 38 points, or 0.6 percent, to close at 6,867.07, bringing its total drop to 5 percent since the start of the year.
The heavier index, representing all shares, also tumbled 23 points, or 0.6 percent, to settle at 3,940.88, on a value turnover of P6.6 billion.
Six of the 20 most active stocks ended in the green, led by food manufacturer Universal Robina Corp., which climbed 2.2 percent to P183.90. Parent company JG Summit Holdings Inc. rose 1.2 percent to P72.
Globe Telecom Inc. gained 1.1 percent to P1,890, while developer Robinsons Land Corp. added 0.9 percent to close at P27.50. Union Bank of the Philippines rose 0.3 percent to P56.95. Conglomerate GT Capital Holdings Inc. inched up 0.1 percent to P1,262.
Exchanges from New York and Sao Paolo to London and Tokyo cheered the Fed’s widely-expected decision Wednesday to lift borrowing costs for the first time in almost a decade, which was taken as a sign of its confidence in the world’s top economy.
However, while European equities extended their advance on Thursday, Wall Street’s three main markets were dragged down by energy firms as oil prices tanked again on weak demand, a torpid global economy and a strengthening dollar.
Some of the names in the energy sector tumbled in US trade, including ExxonMobil, Chevron, copper and gold producer Freeport-McMoRan, and mining equipment maker Caterpillar.
Those losses were mirrored in Asia, with Sydney-listed Rio Tinto down three percent and BHP Billiton falling 2.4 percent, while Hong Kong-listed PetroChina shed 2.3 percent and CNOOC gave up two percent. Inpex sank 1.7 percent in Tokyo. With AFP, Bloomberg