Market starts 2022 trading with losses

Stocks fell on the first trading day of 2022, as Metro Manila reverted to the more stringent Alert Level 3 status in the face of rising COVID-19 cases.

The Philippine Stock Exchange index, the 30-company benchmark, shed 81 points, or 1.1 percent, to close at 7,041.27 Monday, while the broader all-share index retreated 40 points, or 1.1 percent, to 3,777.90.

Trading was thin, with a value turnover of P4.26 billion. Losers outnumbered gainers, 141 to 66, while 40 issues were unchanged.

Nine of the 10 most active stocks ended in the red, with only Solar Philippines Nueva Ecija Corp. rising 1.6 percent to P1.30.

In Asia, the new year got off to a broadly upbeat start in holiday-thinned trade as most markets rose, with some cheer provided by data suggesting regional economies improved last month.

However, investors remain shackled by concerns about a range of issues including the fast-spreading Omicron variant, inflation, the removal of central bank stimulus and geopolitical tensions.

While the last few months of 2021 were marked by uncertainty on trading floors, global stocks enjoyed blockbuster rallies across the year as economies reopened and lives in most countries returned to some semblance of normal, fueling optimism that the recovery would stay on track.

And data showing factory activity picked up last month across the region—including in South Korea, Taiwan, Malaysia and the Philippines—provided a little optimism to start the year. The readings come after China posted a better-than-forecast figure on Friday thanks to a dip in commodity prices.

Singapore enjoyed a positive day thanks to news that the city-state’s economy expanded 7.2 percent last year, having suffered in 2020 its worst performance since independence.

Seoul, Taipei, Mumbai and Jakarta also rose, though Manila dipped.

Jun Rong Yeap, of IG Asia, said: “While the rising Omicron spreads may warrant a cautious approach toward reopening, some expectations may be that improved vaccinations will aid to limit the eventual economic impact.”

Hong Kong reversed morning gains to end in the red, with tech firms a major drag, while sentiment was also hurt by news that trading in embattled developer China Evergrande had been suspended, providing a reminder of the crisis in China’s vast property sector.

Frankfurt and Paris opened higher.

London, Tokyo, Shanghai, Sydney, Wellington and Bangkok were closed for holidays. With AFP

Oil prices climbed as eyes turn to the latest meeting of OPEC and other major producers on Tuesday, where they will discuss plans to lift output in light of the impact of Omicron, which has forced some governments to impose lockdowns and airlines to cancel flights.

The commodity was getting some support from a drop in Libyan output as workers try to fix a pipeline after a militia closed down the country’s biggest oilfield.

“I think OPEC+’s decision is a foregone conclusion and Omicron news and data will remain the major influence on oil sentiment,” Vandana Hari, of Vanda Insights, said.

“We’re likely seeing some bargain hunting (Monday) after a rush to sell at the end of last week.” With AFP