Stock market declines; ABS-CBN tops gainers

The stock market declined Wednesday for the third straight day, after Donald Trump called off talks on a much-needed stimulus before urging lawmakers to agree on handouts for struggling Americans and help for small businesses.

The Philippine Stock Exchange Index fell 42.76 points, or 0.7 percent, to 5,867.88 on a value turnover of P7.1 billion. Gainers, however, beat losers, 101 to 92, with 48 issues unchanged.

DITO CME Holdings Corp. of businessman Dennis Uy, the third major telecommunications firm, dropped 15.3 percent to P5.77, while Now Corp. of the Velarde family, the fourth major telecom company, sank 15.1 percent to P4.23.

ABS-CBN Corp. of the Lopez Group, however, surged 50 percent to P13.50, while parent Lopez Holdings Corp. advanced 20.8 percent to P3.02.

The rest of Asian markets fluctuated Wednesday.

The US president halted discussions just as lawmakers appeared to be making progress after months of haggling, sparking a sell-off on Wall Street which had been rallying on hopes for a breakthrough to help the beleaguered economy.

Asian markets fell immediately after opening, but many recovered and were mixed in later trade.

Hong Kong and Seoul each rose 0.9 percent, while Sydney put on more than one percent thanks to a huge tax-cutting budget by the Australian government late Tuesday.

There were also gains in Mumbai, Singapore, Taipei and Wellington, but Tokyo and Jakarta were in the red.

Just hours earlier, Federal Reserve boss Jerome Powell had warned that failure to reach an agreement would cause “unnecessary hardship” for Americans, while analysts said it would have a major impact on the crucial consumer sector that is the major driver of growth.

The president accused Democratic House Leader Nancy Pelosi of negotiating in bad faith and said he had asked Senate Majority Leader Mitch McConnell to instead focus on confirming his appointed judge to an opening on the Supreme Court.

“Nancy Pelosi is asking for $2.4 Trillion Dollars to bailout poorly run, high crime, Democrat States, money that is in no way related to COVID-19,” he tweeted, citing an incorrect figure for the Democrats’ latest proposal.

“We made a very generous offer of $1.6 Trillion Dollars and, as usual, she is not negotiating in good faith. I am rejecting their request, and looking to the future of our Country.”

He added that after the election, which he said he would win, “we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business.”

Emily Weis, a strategist at State Street Corp., told Bloomberg TV: “The market rally thus far had really been driven by this unprecedented stimulus from both central banks and governments globally and a large part of that was from the US.” 

The timeline on more American fiscal stimulus “has now been pushed further back.”

There was hope for some form of help for struggling Americans, however, when he tweeted he would immediately sign a Congressional bill guaranteeing a second round of $1,200 handouts and $135 billion for small businesses—which were already included in the negotiations. With AFP