The stock market retreated Wednesday as investors started taking profits before testing again the 9,000-point mark that the Philippine Stock Exchange Index nearly touched Tuesday.
The PSEi fell 78.79 points, or 0.9 percent, to P8,920.23 on a value turnover of P8.5 billion. Losers beat gainers, 115 to 103, with 40 issues unchanged.
LT Group Inc. of tobacco and airline tycoon Lucio Tan dropped 4.3 percent to P22.50, while Bank of the Philippine Islands, the third-biggest lender in terms of assets, lost 2.4 percent to P118.10.
BDO Unibank Inc., the largest bank, declined 1 percent to P157.90, but casino operator Bloomberry Resorts Corp. climbed 5.3 percent to P11.86.
Most Asian markets, meanwhile, shrugged off profit-taking Wednesday and pressed on with a new year rally that has sent Hong Kong to successive records, though the dollar suffered fresh losses against its major peers.
Optimism about the global economy which was reinforced this week by the International Monetary Fund, strong earnings reports and Donald Trump’s tax cuts have helped fuel a surge in global equities which many expect to continue.
“The earnings season is going phenomenally well, and the government shutdown on Friday was reversed (on Monday) so we’ve got the government behind us for the next couple of weeks,” Phil Orlando, chief equity market strategist at Federated Investors, told Bloomberg News.
“But the reason the stock market is up is very simply that investors are reflecting on the fact that earnings are much better than expected.”
Adding to the buying spree in equities is what some analysts describe as the “fear of missing out” on the money-making rally.
Regional investors looked to have run out of puff in the morning, though, with most indexes falling into the red on profit-taking.
But Hong Kong bounced back in afternoon business to sit 0.2 percent higher and touch a new record high, while Shanghai ended up 0.4 percent.
Sydney and Singapore each rose 0.3 percent, while Seoul put on 0.1 percent. Wellington, Mumbai, Bangkok and Kuala Lumpur were also higher.
However, Tokyo was unable to join the recovery and fell 0.8 percent, with exporters hit by a strengthening yen.
Taipei also fell while Jakarta retreated from Tuesday’s record close.
On currency markets the dollar sell-off continued as investors bet on tighter monetary policies by major central banks, bringing them in line with the Federal Reserve.
Markets are also spooked by possible trade frictions after Trump slapped stinging tariffs on imports of solar panels and washing machines, while talks on revising the Nafta pact begin.
Sterling held above the $1.40 mark it broke Tuesday on the improving chances of a “soft” British exit from the European Union.
“The rumors of a softer stance from Belgium have helped the move from a pound perspective, but this move is undoubtedly a US dollar decline,” said James Hughes, chief market analyst at AxiTrader in Britain. With AFP