Stocks fell for a second day at the start of the so-called ‘ghost month’ as investors took profit following the release of lower-than-expected earnings by several companies.
The Philippine Stock Exchange index, the 30-company benchmark, shed 111 points, or 1.4 percent, to close at 7,906.60, as all six major sectors declined.
The heavier index, representing all shares, also fell 42 points, or 0.9 percent, to settle at 4,723.91, on a value turnover of P6.2 billion. Losers outnumbered gainers, 114 to 86, while 48 issues were unchanged.
Five of the 20 most active stocks ended in the green, led by hotel operator Waterfront Philippines Inc. which jumped 15 percent to P1.38 and casino operator Bloomberry Resorts Corp. which advanced 2.3 percent to P9. Budget carrier Cebu Air Inc. rose 2.1 percent to P103.10.
Meanwhile, stocks climbed in Asia after Japanese corporate earnings, Chinese manufacturing and South Korean export data reinforced confidence in global growth.
The MSCI Asia-Pacific Index rose to the highest since 2007 as equity indexes from Tokyo to Sydney advanced with raw-material producers adding to the recent rally. The bullish start to August for Asian stocks looks like spreading to Europe where futures tipped a higher open.
Global equities remain near all-time highs, with data this week from China and Japan reinforcing optimism for growth after figures on Friday showed the US economy accelerating in the second quarter.
South Korea’s exports jumped 20 percent in July from a year earlier, topping expectations, as strong global demand continues to underpin the nation’s economy. Washington remains a fixation of traders, with President Donald Trump ousting communications director Anthony Scaramucci after just 10 days on the job.
The Reserve Bank of Australia held the benchmark at 1.5 percent while warning that a rising currency is expected to subdue inflation and weigh on the outlook for growth and employment.
The Aussie gyrated after the decision, briefly dipping below 80 US cents before jumping as high as 80.43 cents.
Asia markets started the month on a high, buoyed by another Wall Street record close and strong earnings results, as the dollar came under fresh pressure from instability in the White House.
Equity indexes from Hong Kong to Sydney all recorded positive figures, as oil extended a rally with the WTI contract trading above $50 per barrel for the first time since May.
The Dow shrugged off the latest developments in the Trump administration to finish at its fourth straight record.
Analysts said sentiment on Wall Street remains upbeat in the wake of largely positive earnings reports. Of the nearly 300 companies in the SP 500 that have reported results so far, more than three-quarters have exceeded earnings expectations, according to Wells Fargo Advisors.
Asian investors were looking ahead to a Reserve Bank of Australia rate decision later Tuesday, with a poll of 24 economists surveyed by Bloomberg expecting the benchmark to be held at 1.5 percent after inflation dropped below the target range in the second quarter and economic growth was weak in the first three months.
Analysts will be closely watching the RBA decision’s effect on the Australian dollar, which was trading at over 80 US cents Tuesday. With AFP, Bloomberg