Stock market slips; URC, GT Capital lead decliners

Share prices fell on profit-taking, weighed down by surging global virus cases and the imposition of a strict lockdown in England.

The Philippine Stock Exchange Index dropped 47.91 points, or 0.7 percent, to 7,224.89 on a value turnover of P8.5 billion. Losers beat gainers, 144 to 83, with 42 issues unchanged.

GT Capital Holdings Inc. of the Ty Group slumped 4.2 percent to P609.50, while Universal Robina Corp., the biggest snack food maker, declined 3.4 percent to P155.50.

AC Energy Philippines Inc., a unit of conglomerate Ayala Corp., surged 8.3 percent to P7.15, while Dito CME Holdings Corp., the third major mobile phone company, rose 5.3 percent to P8.35.

The rest of Asian markets were mixed Monday as news of a US stimulus agreement was offset by surging virus cases, while the pound sank by fears over stuttering Brexit talks.

Oil prices also tumbled as the new containment measures hammered expectations for travel over the Christmas period, with the discovery of a mutated and more infectious strain of the coronavirus in Britain also leading several governments to ban flights from the country.

Tokyo, Hong Kong, Sydney, Mumbai, Bangkok and Wellington were all in the red, though Shanghai, Seoul, Taipei and Singapore rose.

“Markets have adopted a light-at-the-end-of-the-tunnel approach since Pfizer and Moderna’s vaccines burst onto the stage,” said OANDA’s Jeffrey Halley. “However, the weekend’s events have delivered an unceremonious Monday morning wake-up call that negotiating the first quarter of 2021 could be a torturous affair.”

After months of painful, combative talks, US lawmakers on Sunday finally announced they had reached a deal for a new economic rescue package worth nearly $900 billion.

The bill includes aid for vaccine distribution and logistics, extra jobless benefits of $300 per week, and a new round of $600 stimulus checks.

“We’ve agreed to a package of nearly $900 billion. It is packed with targeted policies to help struggling Americans who have already waited too long,” Republican Senate Leader Mitch McConnell said in a statement.

Democratic House Speaker Nancy Pelosi and the party’s top senator Chuck Schumer added that the deal “delivers urgently needed funds to save the lives and livelihoods of the American people as the virus accelerates.”

While expected, the deal’s announcement will come as a relief to markets, which have been desperate for Washington to give the world’s top economy a much-needed shot in the arm as it struggles with the impact of Covid-19. 

Also at the weekend, US authorities gave the green light to another vaccine, made by Moderna, paving the way for it to be rolled out this week.

However, the news comes as countries battle a frightening surge in infections that is battering economies once again. Among the worst-hit is the United Kingdom, where the government at the weekend tore up a planned relaxing of containment measures for Christmas.

Prime Minister Boris Johnson made the announcement as the country is hit by a new strain of the virus that is more infectious, and put millions of Britons into a strict new lockdown. With AFP