Stocks decline; Bloomberry rises

The stock market retreated Thursday on mild profit taking ahead of the release of the March inflation figures today.

The Philippine Stock Exchange Index fell 40.93 points, or 0.5 percent, to 7,854.13 on a value turnover of P5.9 billion. Losers beat gainers, 109 to 87, with 46 issues unchanged.

Cemex Holdings Philippines Inc. tumbled 10.6 percent to P2.02 as its stock rights offering plan spooked investors. International Container Terminal Services Inc., the biggest port operator, dropped 4.3 percent to P123.80.

Bank of the Philippine Islands, the third-largest lender in terms of assets, declined 3.6 percent to P81, but casino operator Bloomberry Resorts Corp. rose 3.1 percent to P12.58.

The rest of Asian markets were mixed Thursday as growing expectations that China and the United States will reach a trade agreement were offset by profit-taking after an extended rally.

Hong Kong fell 0.2 percent after a seven-day rally, while Sydney was off 0.8 percent and Wellington dropped 0.5 percent.

However, Tokyo ended 0.1 percent higher and Shanghai jumped  0.9 percent, while Singapore and Seoul each added 0.2 percent.

Mumbai was flat, while India’s rupee fell 0.6 percent after the central bank cut interest rates for the second time this year, a week ahead of a general election and with the economy stuttering.

Hopes Britain will avert crashing out of the EU next week also instilled some optimism on trading floors, with the pound extending gains.

Global stocks have enjoyed a stellar year so far thanks to confidence in a deal being reached.

High-level talks between the world’s top two economies resumed Wednesday in Washington, with reports saying they are edging towards an agreement to bring the curtain down on a long-running row that helped batter markets last year.

Bloomberg News said the deal they are working on would give China until 2025 to meet pledges on purchases and to let US firms wholly own their businesses in the country.

It said the aim was to get everything in place for presidents Donald Trump and Xi Jinping to sign off on a trade deal.

White House economic adviser Larry Kudlow the talks were “making good headway” but added: “We’re not there and we hope this week to get closer.”

The Bloomberg report follows an article in the Financial Times saying they were closing in on an agreement.  

“The market is becoming more convinced that a deal is coming between China and the US,” Greg McKenna, at McKenna Macro, said in a note. “Enforcement on the US side and lifting tariffs to cement the deal on the Chinese side seem now to be the points of contention.”

David Madden, a market analyst at CMC Markets UK, pointed out that Kudlow had flagged movement on intellectual property theft and hacking, which are key bugbears of the White House.

“These issues have been a major point of contention for the US, and the fact that they are being discussed, indicates that Beijing are serious about reaching a deal,” he added. With AFP