The stock market gained Wednesday, ignoring the losses in the rest of the region after the International Monetary Fund lopped 0.1 percentage point off its outlook for the global economy for both this year and next.
The Philippine Stock Exchange Index added 15.96 points, or 0.2 percent, to 8,051.97 on a value turnover of P8.8 billion. Gainers beat losers, 113 to 84, with 54 issues unchanged.
SM Investments Corp. of retail tycoon Henry Sy rose 0.7 percent to P1,017, while retailer Puregold Price Club Inc. of tycoon Lucio Co advanced 3.6 percent to P47.85.
Security Bank Corp., the sixth-largest lender in terms of capital, climbed 3.1 percent to P208.40, while Bank of the Philippine Islands, the third biggest bank in terms of assets, gained 0.5 percent to P99.50.
Japanese stocks, meanwhile, finally fell Wednesday after six straight days of gains, and most other Asian markets moved cautiously following weak leads from New York and Europe.
The Nikkei in Tokyo had surged more than 10 percent during its rally—fuelled by hopes for stimulus measures as well as a weaker yen—and investors decided it was time to cash in.
The index ended down 0.3 percent.
Asian markets moved more cautiously than they have in the past week, although confidence that central banks will introduce more monetary easing measures is providing some support.
Hong Kong added one percent, having fallen Tuesday for the first time after a six-session winning streak.
Sydney ended up 0.7 percent but Shanghai shed 0.3 percent and Seoul was 0.1 percent lower.
In early European trade London rose 0.4 percent, Frankfurt added 0.7 percent and Paris put on 0.6 percent.
“The rally is losing some momentum as the [corporate] reporting season heats up,” said Niv Dagan, executive director at Peak Asset Management LLC in Melbourne.
“We’re staying cautious and taking a little bit of profit off the table. With the equity rebound stalling, we are really looking for positive momentum from the reporting season” for the next leg-up in stock markets, he told Bloomberg News.
While the Dow on Wall Street closed at another record, the broad lead from Europe and New York was tepid after the IMF reduced its outlook for the global economy.
The Fund pointed to last month’s shock vote for Britain to leave the European Union, saying it had darkened the skies in that country and across the euro area and dented an already fragile recovery.
It also downgraded its 2016 growth estimate for the British economy by 0.2 percentage points, putting renewed pressure on sterling, which eased to $1.3087 in Asia and back towards the three-decade lows hit after the June 23 vote.
Adding to the downbeat mood in Europe, a key survey showed Tuesday that investor confidence in Germany fell to its lowest level in nearly four years in July on concerns about the Brexit fallout. With AFP