Stocks fall; Manila Water advances

Stocks fell Thursday on lack of a catalyst that could boost the benchmark index, even as some investors took opportunities in water-related issues whose share prices have swung in recent sessions.

The Philippine Stock Exchange Index dropped 79.73 points, or 1 percent, to 7,653.94 on a value turnover of P12.6 billion. Losers beat gainers, 102 to 67, with 63 issues unchanged.

Jollibee Foods Corp., the biggest fast-food chain, declined 4 percent to P216, while Security Bank Corp., the sixth-largest lender in terms of assets, shed 3.1 percent to P187.

Manila Water Co. Inc., which holds the concession to distribute water in the eastern zone of Metro Manila, surged 13.1 percent to P7.75, while DMCI Holdings Inc., which partly owns Maynilad Water Services Inc., advanced 9.1 percent to P6.47. 

The rest of Asian markets turned lower on Thursday as the dealers begin to wind down ahead of the Christmas break and as the rally fueled by the China-US trade pact loses steam.

Asia was on the back foot. Hong Kong lost 0.4 percent in the afternoon and Tokyo ended 0.3 percent lower.

Sydney fell 0.3 percent and Singapore dropped 0.2 percent while there were also losses in Taipei, Bangkok and Jakarta.

However, Seoul and Mumbai rose while Wellington rallied more than one percent. Shanghai was virtually unchanged.

“With the holiday season nearly upon us, attention seems more focused on flights home and calorific intakes than flights to quality,” said OANDA senior market analyst Jeffrey Halley. 

There was little major reaction after the House of Representatives voted to impeach Donald Trump as he is unlikely to be removed from office by the Republican-held senate.

With few catalysts to drive business, investors were taking it easy after a rollercoaster year that has seen equities swing back and forth mostly by trade rows between the US and China as well as other major allies, while Brexit has also played a key role.

The hope is that now Washington and China have reached a partial tariffs agreement—and British politics is on a more even keel after last week’s decisive election win for pro-Brexiter Boris Johnson—markets can enjoy a healthy 2020.

Analysts pointed to a recent run of positive economic data around the world that indicates the slowdown in global growth could be nearing a bottom, which could help Wall Street extend its record-breaking run.

“The trade deal relief rally looks set to take on a fundamental shift as the global growth rally trade of 2020 starts to build momentum on the back of the decisive run of comprehensive economic data to end the year,” said Stephen Innes at AxiTrader.  

Last Friday’s China-US pact provided a boost to global markets—which had already been rallying for weeks in anticipation of a deal—but they were unable to keep up the pace as this week rolled on.

On Wednesday the Dow and S&P 500 dipped slightly, though the Nasdaq managed to eke out yet another all-time high. With AFP