Stocks fell Monday, as investors await the release of first-quarter economic growth data later in the week and following the release of disappointing US economic figures.
The Philippine Stock Exchange index, the 30-company benchmark, dropped 42 points, or 0.6 percent, to close at 7,772.93, as five of the six major sectors declined, with only holding firms treading in positive territory.
The heavier index, representing all shares, went down 16 points, or 0.4 percent, to settle at 4,632.17, on a value turnover of P7.5 billion. Losers outnumbered gainers, 112 to 85, while 50 issues were unchanged.
Eight of the 20 most active stocks ended in the green, led by Alliance Global Group Inc., the holding company of tycoon Andrew Tan, which climbed 4.1 percent to P14.70. Metropolitan Bank & Trust Co., the second largest lender, rose 2.4 percent to P89, while JG Summit Holdings Inc. of tycoon John Gokongwei added 2.1 percent to close at P84.95.
Meanwhile, most Asian markets rose Monday, with Hong Kong heading for a sixth successive gain as traders brushed off another set of disappointing US economic figures.
Investors were given a healthy lead from Europe where London and Frankfurt ended at record highs but below-par Chinese figures tempered gains.
Hong Kong rose 0.7 percent to levels not seen since mid-2015, while Shanghai edged up 0.2 percent, a third straight win after losing about seven percent since April on worries about a government crackdown on leveraged investment.
Seoul added 0.2 percent as investors ignored another missile test by North Korea at the weekend, while Singapore climbed 0.3 percent.
However, Tokyo ended 0.1 percent lower on the back of a stronger yen. Troubled conglomerate Toshiba jumped more than three percent despite once again delaying the release of nine-month earnings and warning of a 950 billion yen net loss.
The figure was smaller than the more than one trillion yen loss previously estimated and analysts said the jump was likely due to investor relief that authorities do not appear ready to delist Toshiba, despite repeated earnings delays.
In China, official data showed output from the country’s factories and workshops slowed more sharply than expected in April, while retail sales were also below par.
The data comes as China hosts an international summit showcasing its Silk Road project that it hopes will revive ancient trading routes and breathe life into the world’s number two economy, which grew last year at its slowest pace in a quarter of a century.
On Wall Street, the Dow ended in the red after another weak set of results from top stores JC Penney and Nordstrom, which added to concerns about the world’s biggest economy’s key retail sector. The downbeat came a day after disappointing earnings from Macy’s.
Adding to the sense of worry were US retail sales and inflation data that fell short of expectations and had investors rethinking expectations for the Federal Reserve’s rate of interest rate hikes this year.
Stephen Innes, senior trader at Oanda, said in a note that the readings “did little to convince investors that a recent run of weak US economic performance was reversing”.
“If the deterioration in tier one US economic data continues, I think it will be time for a reality check” regarding the Fed’s rate plans.
Both main crude contracts rose abut 1.5 percent as dealers welcomed comments from the oil ministers of Saudi Arabia and Russia that they would consider extending an output cut into 2018. With AFP, Bloomberg
