Stocks fell for a second day, bucking the gains in other Asian markets, as investors assess the impact of President Rodrigo Duterte’s declaration of “separation from the US.”
“I announce my separation from the US,” Duterte said to a packed room of business leaders in Beijing after meeting with President Xi Jinping. He said the separation from the US would be both military and economic, without elaborating.
The Philippine Stock Exchange index, the 30-company benchmark, dropped 63 points, or 0.8 percent, to close at 7,650.22 Friday. Despite the loss, it was still up 10 percent this year.
The heavier index, representing all shares, also fell 18 points, or 0.4 percent, to settle at 4,518.11, on a value turnover of P7 billion. Losers outnumbered gainers, 103 to 85, while 46 issues were unchanged.
All six sectors ended in the red, while nine of the 20 most active stocks ended in the green, led by casino operator Bloomberry Resorts Corp. which climbed 7.6 percent to P5.81 and Global Ferronickel Holdings Inc. which advanced 6.1 percent to P1.22.
Meanwhile, other Asian markets traded higher Friday as investors broadly welcomed the European Central Bank’s announcement that it would maintain the size and scope of its bond-buying program.
Players were closely watching to see if ECB chief Mario Draghi would hint at an extension—or a winding down—of the drip feed stimulus, with growth and inflation still lackluster.
But Draghi said Thursday the ECB probably won’t stop its asset buying in the near term, at least not, abruptly.
European markets took some heart from the lack of an immediate policy change, with Frankfurt and Paris closing up 0.52 percent and 0.44 percent respectively.
London meanwhile finished the day little different, up a mere 0.07 percent.
Tokyo rose Friday morning, building on the six-month high it reached the day before.
The Nikkei was up 0.29 percent at the break, lifted by a weakening yen, a plus for shares of Japan’s exporters as it boosts their profitability.
Shanghai was up 0.35 percent but Sydney was down 0.09 percent.
Asia’s positive start to the day stood in contrast to the US, where retreating oil prices and some disappointing company earnings hit sentiment.
Investors are still focused on what the US central bank will do with its interest rate later this year.
“There’s no shortage of things that will generate volatility,” Mark Lister, head of private wealth research at Craigs Investment Partners in Wellington, told Bloomberg.
“But unless something comes out of left field, the Fed will hike in December and that means the economy is on a solid footing and that’s positive.”
Topix-listed Nintendo plunged Friday as investors gave the thumbs down to its long-awaited new console.
The game maker’s shares dived 5.3 percent to 25,520 yen as markets reacted to a preview trailer for a console seen as key to its business, as it competes with Sony’s hugely popular PlayStation 4.
Markets in Hong Kong were closed for the morning session as Typhoon Haima bore down on the city. With AFP, Bloomberg