The stock market dropped Tuesday on falling oil prices and concerns that risks to a global economic recovery are increasing.
The Philippine Stock Exchange Index lost 46.03 points, or 0.6 percent, to 7,935.18 on a value turnover of P6.8 billion. Losers beat gainers, 117 to 72, with 44 issues unchanged.
PLDT Inc., the biggest telecommunications company, declined 2.4 percent to P1,800, while Universal Robina Corp., the largest snackfood maker, tumbled 3.6 percent to P184.20.
Metro Pacific Investments Corp., which is into water and electricity distribution, toll roads and hospitals, lost 1.4 percent to P7.25, while cement maker Cemex Holdings Philippines Inc. dropped 2 percent to P12.40.
Emerging-market currencies, meanwhile, snapped a two-day loss after oil surged and minutes of last month’s Federal Reserve meeting reaffirmed its gradual approach to raising interest rates.
Malaysia’s ringgit jumped the most in a week as the petroleum exporter’s outlook improved and a report showed foreigners pumped the most money into the nation’s bonds in almost two years last month. Indonesia’s rupiah strengthened for the first time in four days and India’s rupee advanced, lifting a gauge of emerging currencies from its lowest level this month. Developing-nation stocks pared gains after rebounding from a three-week low as Chinese equities fell for a second day and technology shares retreated.
“Broadly emerging-market currencies have benefited from the dollar weakness,” said Nizam Idris, the Singapore-based head of strategy for fixed income and currencies at Macquarie Bank Ltd. “The minutes out yesterday give the green light for some further appreciation.”
Energy firms sank in Asian trade on Tuesday as oil prices extended the previous day’s sharp losses due to profit-taking after a recent rally and fresh worries about a global oversupply.
Even a fall in the dollar, which usually makes crude cheaper, could not stop the slide in the commodity after Iraq flagged a pick-up in output and rebels in key producer Nigeria announced a ceasefire.
On regional stock markets, Tokyo’s Nikkei finished 0.6 percent lower, while Hong Kong was flat. Shanghai added 0.2 percent and Sydney closed 0.7 percent higher while Seoul tacked on 0.4 percent.
In early European trade London and Paris each rose 0.4 percent and Frankfurt added 0.5 percent.
Investors were also treading water as they await a key speech from Federal Reserve boss Janet Yellen, hoping for some insight into the state of the US economy and the bank’s plans for its next interest rate rise.
After a seven-day rally that put oil into a bull market—a 20 percent jump from recent lows—the commodity has taken a hiding since the start of this week.
In afternoon trade on Tuesday West Texas Intermediate fell one percent to $46.96 and Brent lost 0.7 percent to $48.84. With Bloomberg, AFP
