Philippine stocks declined for second straight day amid the gradual easing of interest rates.
The 30-company Philippine Stock Exchange index stayed above the 7,400 level despite losing 36.67 points, or 0.49 percent, Thursday.
The broader all-shares index also ended lower by 21.32 points, or 0.52 percent, to 4,076.24.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said investors digested the more gradual or measured monetary easing/rate cut signals from the Bangko Sentral ng Pilipinas.
The Monetary Board of the BSP reduced its policy rates by 25 basis points Wednesday amid an improving inflation outlook.
The Monetary Board said it would maintain a measured approach in its easing cycle to ensure price stability conducive to sustainable economic growth and employment.
Ricafort said investors were also evaluating US presidential candidate Donald Trump’s tariff plans, if he wins.
Analysts said adding to the market’s concern is the lingering weakness of the local currency. The peso closed at 57.80 against the US dollar Thursday.
Net value turnover at the stock market reached P5.3 billion. Foreign investors were net sellers for the day, with net foreign outflows amounting to P47.87 million.
Banks were the only gainers for the day, rising 0.38 percent. Holding firms registered the most losses, declining 1.17 percent.
Losers edged gainers 102 to 92. Century Pacific Food Inc. was the top index gainer, advancing by 3.69 percent to P42.20, while Nickel Asia Corp. was the main index laggard, dropping 4.63 percent to P3.50 each.
Meanwhile, stocks in Shanghai and Hong Kong slipped on a mixed day for Asian markets Thursday as Chinese traders shrugged at Beijing’s latest plan to boost the country’s troubled property sector, which came up short of expectations. With AFP
China’s housing minister outlined a fresh batch of measures in the latest bid to convince traders the government was getting a handle on a painful real-estate crisis.
The world’s number-two economy has struggled to recover since lifting strict Covid controls at the end of 2022, battered by a debt crisis in the property sector and torpid consumer demand.
Authorities announced a series of piecemeal measures in that time to little effect, but last month’s raft of pledges sparked blockbuster rallies on the mainland and Hong Kong on hopes that even more were in the pipeline.
But news conferences last Tuesday and Saturday took the wind out of those sails and led to a fresh bout of volatility in trading floors.
And analysts said the latest briefing from housing minister Ni Hong also left investors wanting.
Ni said Thursday that officials would almost double the amount of credit available to complete unfinished housing projects to $562 billion and also help renovate a million homes.
The move, he said, would “be conducive to absorbing the existing stock of commercial housing”.
But SPI Asset Management analyst Stephen Innes said: “They’re still trying to talk the talk, with more noise about stabilizing the property market.
“As the briefing rolled on, it was clear: traders were not thrilled.
“Let’s be honest, though — China’s property mess isn’t something that can be patched up with a few speeches and half-baked measures.”
Hong Kong shed one percent and Shanghai a little more than that, having started the day on a strong note, with property stocks — which had rocketed in the wake of the initial round of measures — tumbling.
There were also losses in Tokyo, Seoul, Manila and Mumbai dropped with London.
Sydney, Singapore, Wellington, Taipei, Bangkok and Jakarta also rose, as did Paris and Frankfurt.
Oil resumed a recent retreat that had been partially fueled by worries about demand from China, the world’s biggest importer of the commodity, as the government fails to reassure markets.
Heron Lim at Moody’s Analytics said the latest round of announcements suggested China was “on its way to finding the bottom in housing prices”.
However, he added: “We did not see an increase in funding for the purchasing of unsold inventory by (state-owned enterprises), which would have helped stabilize demand in the property segment.
“And the promise of reconstruction projects being expanded might be useful to spark a construction segment that has been in a lull from a lack of both private and public projects, but it remains just a promise with no number promised beyond the known 1 million homes thus far.”
The tepid performance in Asia came after a strong lead from New York, where small-cap stocks rose as investors shifted out of big-name firms such as Amazon, Apple and Microsoft, which have soared this year on the back of demand for all things linked to artificial intelligence.
US investors also welcomed strong earnings from Morgan Stanley and United Airlines that helped offset a decision by Dutch tech giant ASML to cut its 2025 guidance and forecast a slump in sales bookings, which sparked worries over the outlook for the sector. With AFP
