Stocks fell for a third day, pulling down the benchmark index below the 7,200-point mark, following reports that Chinese manufacturing activity, a barometer of regional trade growth, slowed last month.
The Philippine Stock Exchange index, the 30-company bellwether, dropped 89 points, or 1.2 percent, to close at 7,132.36 Tuesday, as all six sub-sectors ended in the red.
The broader all-share index shed 43 points, or 1 percent, to settle at 4,398.80, on a value turnover of P5.7 billion. Losers outnumbered gainers, 112 to 72, while 56 issues were unchanged.
Five of the 20 most active stocks ended in the green, led by power retailer Manila Electric Co. which climbed 3.1 percent to P342 and oil explorer PXP Energy Corp. which advanced 2 percent to P16.12
Conglomerate Ayala Corp. rose 1.6 percent to P925, while Metropolitan Bank & Trust Co. added 0.7 percent to finish at P67.90. GT Capital Holdings Inc. gained 0.2 percent to P800.
Meanwhile, oil prices built on gains Tuesday after another blistering rally but most markets were in retreat as traders brushed off a positive lead from Wall Street and the US-Mexico-Canada trade deal.
Crude has motored in recent weeks on concerns about supplies after sanctions are imposed on Iran next month, while Opec’s decision not to ramp up output, upheaval in Venezuela, a strong dollar and a drop in oil rigs have also pushed prices higher.
New York traders sent the Dow and S&P 500 higher after the United States-Mexico-Canada Agreement was announced Sunday to replace the North American Free Trade Agreement.
The deal drew an end to months of uncertainty after Donald Trump had threatened to tear up the decades-old NAFTA.
However, Asia was unable to follow suit. Hong Kong reopened after a long weekend to fall 2.5 percent, with data indicating a drop in Chinese manufacturing activity denting sentiment.
The “HSI is trading with a negative bias, playing catch up from yesterday’s holiday, in reaction to the weaker China [manufacturing] data”, said Stephen Innes, head of Asia-Pacific trade at Oanda.
“It’s more than apparent Hong Kong investors are in no mood to join the revamped NAFTA festivities.”
Sydney shed 0.8 percent, Singapore fell 0.5 percent and Seoul was off 1.3 percent. Wellington, Taipei and Jakarta were also well down.
But Tokyo edged up 0.1 percent after the Nikkei on Monday saw its highest close in 27 years with the yen at its weakest since November. Markets in China were closed for a holiday.
London fell 0.5 percent in the first few minutes of trade, while Paris lost 0.7 percent and Frankfurt shed 0.8 percent.
In forex trade the euro faced selling pressure on concerns about Italy’s finances after its populist government agreed a massive spending boost that blew out its budget, while eurozone finance ministers warned Rome to abide by fiscal rules.
High-yielding and emerging market currencies were mostly down as dealers looked for safer bets. The dollar broke 15,000 Indonesian rupiah for the first time since 1998 during the Asian financial crisis, while Mexico’s peso and the South African rand were more than one percent off against the greenback.
South Korea’s won, the Australian dollar and the Russian ruble were also sharply lower. With AFP
