Stocks closed flat Wednesday in lackluster trading, with gains capped by concerns over a possible increase in COVID-19 cases during the holiday weekend.
The Philippine Stock Exchange Index added just 1.99 points, or 0.03 percent, to 7,204.38 on a value turnover of P6.9 billion. Gainers beat losers, 138 to 90, with 43 issues unchanged.
Dito CME Holdings Corp., the third major mobile phone company, advanced 4.8 percent to P8.70, while Security Bank Corp., the seventh biggest lender in terms of assets, climbed 4.7 percent to P138.70.
PLDT Inc., the largest telecommunications firm, rose 1.3 percent to P1,350, but BDO Unibank Inc., the biggest bank, slipped 1 percent to P106.80.
The rest of Asian markets mostly rose Wednesday following two days of selling, while investors appeared initially unfussed after Donald Trump called a new stimulus package “a disgrace” and told US lawmakers to amend it.
Equities and oil prices have taken a hit recently as virus cases surged across the planet and a new more transmissible strain was reported in the UK, forcing governments to impose tight restrictions and lockdowns to contain the disease over the festive period.
The worrying spike in infections has overshadowed the rollout of vaccines and news at the start of the week that Congress had finally hammered out an economic rescue package worth around $900 billion.
“So much of the good news of the vaccine had been already digested and even the stimulus bill that people had largely anticipated,” Joanne Feeney of Advisors Capital Management said on Bloomberg TV.
“So some of the flattening of the market just reflects how much has already been built into the market from those two good sources of news.”
However, Hong Kong, Tokyo, Shanghai, Sydney, Seoul, Taipei, and Jakarta were all in positive territory after recent losses, while Wellington extended gains. Singapore fell.
New York stock futures dropped, though, after Trump’s outburst against this week’s stimulus agreement.
The outgoing president slammed the package as not having enough for American families and told Congress to rethink it, raising the possibility of it being held up until after Christmas.
“It really is a disgrace,” he said in a video message posted on Twitter.
“I am asking Congress to amend this bill and increase the ridiculously low $600 to $2,000, or $4,000 for a couple,” he added, referring to relief cheques being prepared.
“I’m also asking Congress to immediately get rid of the wasteful and unnecessary items from this legislation, and just send me a suitable bill.”
OANDA’s Jeffrey Halley said: “Asia’s first reaction appears to be that President Trump is bluffing, or that even if Trump vetoes the fiscal stimulus, Congress will act quickly with the necessary votes” to override his veto.
“Given that many Congressional representatives have probably already left Washington DC for the holidays, that could be complacent. For now, markets appear to be holding off pressing the sell button until the situation clarifies.” With AFP
