The stock market fell Thursday on profit-taking, but mining issues recovered after being spooked by the appointment of an anti-mining crusader to the top post of the Environment and Natural Resources Department.
The Philippine Stock Exchange Index lost 26.59 points, or 0.3 percent, to 7,729.78 on a value turnover of nearly P6 billion. Gainers and losers were even at 100 each, with 47 issues unchanged.
Metro Pacific Investments Corp., which owns Philex Mining Corp., the biggest miner, rallied 3 percent to P6.80. Philex surged 6.4 percent to P7.60, while Nickel Asia Corp., the largest nickel producer, jumped 6.7 percent to P5.13.
Conglomerate Ayala Corp. dropped 2.6 percent to P847, while unit Ayala Land Inc. declined 1.6 percent to P38.95.
The pound, meanwhile, climbed against the dollar in Asian trade while stock markets were mostly up but traders stepped nervously as Britain began voting in a knife-edge in-out EU referendum Thursday.
Attention around the globe is now fixated on the ballot, which opinion polls are saying is too close to call but bookmakers suggest will definitely see a victory for the “remain” camp.
On equity markets, Tokyo ended up 1.1 percent and Sydney was 0.2 percent higher while Hong Kong rose 0.4 percent. Shanghai closed 0.5 percent down and Seoul shed 0.3 percent.
In early European trade London and Frankfurt each rose 0.5 percent and Paris added 0.6 percent.
Markets suffered a sharp sell-off last week after surveys indicated Britain would leave, which many analysts warn could lead to another global rout just months after a China-fueled sell-off that wiped trillions off valuations.
However, they have rallied over the past four days as the pro-EU campaign has recovered momentum.
“Public opinion polls keep changing,” Mitsushige Akino, an executive officer at Ichiyoshi Asset Management, told Bloomberg News.
“There are going to be very few investors today who feel able to trade, so it’s hard to get a clear direction in the market.”
Hours before the 0600 GMT start of voting, the pound hit a 2016 record of $1.4844 before easing slightly to $1.4750, but still up from $1.4737 in New York. Sterling has risen almost six percent since hitting a two-month low last Thursday.
However, Bill Fitzpatrick, portfolio manager at Manulife Asset Management, warned: “Anybody who is predicting this with a high degree of certainty is delusional.
“There’s plenty of room for risk assets to move higher, but I would wait.”
And Craig Erlam, senior market analyst at Oanda, warned in a note that investors could be setting themselves up for a big fall.
“Even prior to the rally over the last week, a vote to leave would likely have prompted a sharp decline in the pound,” he said.
“With the pound now around eight cents higher against the dollar than it was then, the potential downside has become even more substantial.”
Adding to concerns were remarks from Federal Reserve boss Janet Yellen, who told lawmakers the US economy faced “considerable uncertainty” from weak domestic activity and a possible British EU exit.
Pointing to slower hiring and business investment, as well as the EU vote, Yellen signalled that the Fed has become less optimistic about short-term growth and will proceed with caution on plans to raise interest rates.
The dollar eased to 104.44 yen from 104.51 yen in US trade.
