Stocks fell for a third day, bucking the gains in other Asian markets, as more companies released second-quarter earnings reports that fell below expectations.
The Philippine Stock Exchange index, the 30-company benchmark, shed 33 points, or 0.4 percent to close at 7,872.65 Wednesday, as three of the six major sectors declined. The bellwether was still up 15.1 percent since the start of the year.
The heavier index, representing all shares, also tumbled 16 points, or 0.3 percent, to settle at 4,707.74, on a value turnover of P7 billion. Advancers edged losers, 99 to 92, while 55 issues were unchanged.
Nine of the 20 most active stocks ended in the green, led by agriculture company Vitarich Corp. which climbed 7 percent to P2.30 and developer Philippine Estates Corp. which advanced 3.3 percent to P0.62. East West Banking Corp. rose 2.8 percent to P33.05.
Meanwhile, a fifth consecutive record close on Wall Street helped fuel further gains for Asian stocks on Wednesday, with bullish sentiment boosted by strong results from Apple and benign world economic data.
Traders took heart from the iPhone maker’s stronger-than-expected results for the past quarter as well as accelerating eurozone growth and upbeat Chinese manufacturing figures.
Higher revenues and profits at Apple helped trigger fresh buying in Tokyo as a range of Japanese companies supply components for the California-based company’s smartphone and other devices.
The Nikkei was up 0.4 percent by the break, while Shanghai”•which closed Tuesday at a record 2017 high”•edged ahead while Hong Kong also gained in morning trade.
Sydney stocks were a rare negative in the region after commodity prices fell.
“Equities… continue to flourish as earning reports drive stocks to new highs,” said Stephen Innes, who heads Asia-Pacific trading at Oanda
“The Dow reached a new-all time high for a fifth consecutive session, nibbling at the key 22k mark.”
Analysts attributed the gains to strong international economic data, including reports showing eurozone growth accelerated slightly in the second quarter and Chinese manufacturing activity rose in July.
US earnings have been strong. Through July 28, companies in the S&P 500 earned 9.1 percent more in the second quarter compared with the year-ago period, according to Factset.
The Dow rose 0.3 percent to 21,963.92, its fifth straight record, after getting to within 10 points of hitting 22,000 for the first time.
“It’s a continuation of the bullish momentum,” said Karl Haeling of LBBW. “Earnings are good.”
London’s FTSE 100 rose 0.7 percent, with engines-maker Rolls-Royce shooting over 10 percent higher after exceeding expectations by posting a half-year pre-tax profit of €1.94 billion ($2.57 billion), traders said. With AFP, Bloomberg