The stock market slipped Thursday on lack of catalysts to lift the benchmark index, ignoring the signing of an initial trade agreement between the US and China.
The Philippine Stock Exchange Index shed 11.22 points, or 0.2 percent, to 7,653.18 on a value turnover of P6.4 billion. Losers beat gainers, 112 to 89, with 32 issues unchanged.
Water-related issues led the retreat, with Metro Pacific Investments Corp. declining 3.8 percent to P3.56 and Manila Water Co. Inc. falling 3.3 percent to P971.
Jollibee Foods Corp., the biggest fast-food company, dropped 2.4 percent to P201, but electronics firm Cirtek Holdings Philippines Corp. jumped 35.4 percent to P8.94.
The rest of Asian markets fluctuated Thursday as details were released of the China-US trade deal signed in Washington, with analysts saying it would allow investors to turn their focus to the global outlook and earnings season.
Tokyo finished 0.1 percent higher, while Sydney rose 0.7 percent, Singapore put on 0.5 percent and Seoul jumped 0.8 percent. Wellington and Bangkok also rose.
Shanghai finished down 0.5 percent, Hong Kong was marginally lower, Taipei dipped 0.2 percent and Mumbai was off 0.1 percent. Jakarta also fell.
After years of painstaking on-off talks between the economic superpowers, US President Donald Trump finally put pen to paper on an agreement that lowers tensions between the two and provides a major boost to the global outlook.
Equities have been rallying since last month’s announcement of a deal to de-escalate a long-running stand-off that has jolted growth around the world and fanned fears of recession in some countries.
The pact—the first part of a wider agreement—includes pledges from Beijing to boost purchases of US agricultural goods and other exports for two years, protects US technology, and provides enforcement mechanisms allowing Washington to impose penalties that Beijing cannot respond to.
In return, the US has cut tariffs on some Chinese products and cancelled others that had been lined up, though levies remain in place on goods worth hundreds of billions of dollars, which Trump said will stay in place until the next phase of talks is complete.
The president hailed it as a “momentous step,” while Beijing cautiously welcomed the “hard-fought agreement” but warned of uncertainties ahead owing to the countries’ fraught relationship.
Still, Wall Street ended with healthy gains, with the Dow and S&P 500 hitting records, but Asian markets swung through the day.
“Given the amount of speculation by the markets and commentary by officials ahead of Wednesday’s signing, it is unsurprising markets have not rallied too strongly upon final signing,” JPMorgan Asset Management strategist Hannah Anderson said.
“In the US, investors largely seem to have accepted this pause in escalation and gotten back to focusing on fundamentals, like what the ongoing earnings season tells us about the outlook for the US equity market. Asia investors are likely to take the same approach.”
But, she added, while the agreement was a big positive, “we should all be aware that headlines about trade, particularly US-China trade, are going to be a constant feature of 2020.” With AFP
