The stock market retreated Friday on profit-taking, with investors lightening up their load as they weigh prospects of third quarter earnings.
The Philippine Stock Exchange Index fell 66.42 points, or 0.8 percent, to 8,420.95 on a value turnover of P10.2 billion. Losers beat gainers, 124 to 72, with 49 issues unchanged.
Conglomerate Ayala Corp. lost 4.1 percent to P1,070 after closing at an all-time high of P1,116 Thursday, while Universal Robina Corp. dropped 2.2 percent to P137.
Pilipinas Shell Petroleum Corp., the smaller of the two oil refineries, tumbled 3.5 percent to P62.60, while GT Capital Holdings Inc. of tycoon George Ty fell 2.1 percent to P1,190.
The rest of Asian and European markets rose on Friday, with Japan’s Nikkei clocking up a record-equalling 14 straight wins, while the dollar also rallied on hopes for Donald Trump’s tax cut plans.
A succession of strong earnings and economic indicators has fueled optimism on trading floors in recent weeks, with Wall Street’s three main indexes continuously hitting records.
Tokyo ended marginally higher as a weaker yen helped reverse early losses to see the Nikkei to its 14th straight gain, matching its best run since 1961.
Hong Kong jumped one percent after sinking almost two percent Thursday on profit-taking, while Sydney gained 0.2 percent and Seoul jumped 0.7 percent. Shanghai rose 0.3 percent.
Singapore gained 0.1 percent while Wellington and Jakarta were also up.
However, there is chatter that it might be time to take a breather after a global rally in recent months with a number of key issues on the horizon including the choice of a new Federal Reserve boss, Brexit talks and the Catalan crisis.
Treasury chief Steven Mnuchin said this week that markets could see a correction if US lawmakers fail to pass the president’s tax-cut measures, while People’s Bank of China governor Zhou Xiaochuan warned of “excessive optimism” and a possible plunge in prices.
But Trump’s promise to pass the legislation moved a step closer late Thursday when senators agreed a budget resolution that unlocks a procedure allowing Republicans to push through such measures without the need for Democrat help.
Trump hailed the vote as “an important step in advancing the administration’s pro-growth and pro-jobs legislative agenda.”
Expectations the tycoon’s tax cuts and big spending plans would boost the economy were one of the drivers of a months-long global markets rally that kicked off after his November election, though a series of White House crises and legislative setbacks pared those gains.
While the controversial proposals still have a long way to go before being passed, the news spurred Asian markets to life after a plodding start to the day, while the dollar strengthened against the yen, euro and pound.
“The budget still has to also pass the House, but near term, it should be supportive for the dollar,” Shinichiro Kadota, a senior foreign-exchange strategist at Barclays Securities Japan in Tokyo, told Bloomberg News.
“Senate passage of budget was a step required for budget reconciliation to advance tax reform.” With AFP