Stocks fell for a third day, pulled down by mining issues after the Environment Department suspended the operations of more than two dozen mines.
The Philippine Stock Exchange index, the 30-company benchmark, lost 1 point to close at 7,225.91 Thursday. This trimmed the market’s total gains this year to 5.6 percent.
The heavier index, representing all shares, also dropped 3 points, or 0.1 percent, to settle at 4,365.71, on a value turnover of P5.9 billion. Losers outnumbered gainers, 102 to 80, while 44 issues were unchanged.
Three of the six sectoral indices dropped, led by mining and oil which slid 1.7 percent.
Eleven of the 20 most active issues rose, led by Robinsons Retail Holdings Inc. which climbed 1.7 percent to P80.50 and BDO Unibank Inc. which gained 1.4 percent to P112.
Global Ferronickel Holdings Inc. dropped 5.2 percent to P2.74.
Meanwhile, concerns over Donald Trump’s presidency hit Asian equity markets.
After the US Federal Reserve’s first meeting of the year, policymakers noted ongoing economic growth, job gains and improving business and consumer confidence, but gave little away about its intentions for monetary policy.
The Fed said it “expects that economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate”, almost unchanged from its December statement.
The bank said it still expects to raise rates only gradually, though analysts said the timing is a subject of debate.
While it was not expected to make any big announcements–having hiked interest rates last month–the lack of any solid guidance hit the dollar, which was already under pressure on concerns about the controversial start to Trump’s term in office.
“Traders seem to be disappointed with the Fed’s decision,” Greg McKenna, chief market strategist at FX and CFD provider AxiTrader, said in a note.
“Janet Yellen’s statement was a bit of an anticlimax insofar as it completely straight-batted the current outlook and added little fresh information on the outlook for the US economy.”
The greenback dipped against the yen and euro while it also retreated against most higher-yielding currencies including the South Korean won, Australian dollar and Canadian dollar.
The dollar’s weakness compares with the rally it enjoyed in the two months after Trump’s November election win as traders bet his pans for big spending and tax cuts would fire the US economy, stoke inflation and lead to rate hikes.
However, his order to ban travelers from seven Muslim-majority nations and a series of outbursts from the administration have fueled concern he will press on with a unilateralist agenda that could lead to a global trade war.
“The Trump administration’s protectionist rhetoric and divisive political approach have raised concerns the anticipated fiscal stimulus measures could be derailed,” Elias Haddad, Sydney-based senior currency strategist at Commonwealth Bank of Australia, told Bloomberg News.
The uncertainty continues to hurt equities markets, with Tokyo ending 1.2 percent lower and Hong Kong down 0.7 percent in late trade, while there were also losses in Singapore, Wellington and Taipei.
Sydney fell 0.1 percent while Seoul retreated 0.5 percent.
The tepid performance came despite a positive lead from Wall Street and Europe following strong increases in US private-sector hiring and manufacturing activity. With AFP, Bloomberg