Stocks fell slightlyTuesday in muted trading as investors ignored the expected strong economic recovery shown by the gross domestic product figures in the second quarter of the year.
The Philippine Stock Exchange Index dropped 9.34 points, or 0.1 percent, to 6,623.23 on a value turnover of P6.3 billion. Gainers, however, edged losers, 94 to 88, with 54 issues unchanged.
The Philippine economy grew in the second quarter at its fastest pace in more than three decades, but an official warned Tuesday of “speed bumps” as coronavirus restrictions were tightened to combat surging infections. Gross domestic product expanded 11.8 percent on-year, the statistics agency said, after five straight quarters of contraction.
AC Energy Corp., a unit of conglomerate Ayala Corp. of the Ayala Group, retreated 3.2 percent to P9.07, while sister unit Ayala Land Inc. declined 1.8 percent to P33.20.
DITO CME Holdings Corp., the third mobile phone company, however, advanced 12 percent to P8.24, while DMCI Holdings Inc. of the Consunji Group rose 4 percent to P5.70.
Markets in Asia, meanwhile, mostly rose Tuesday as hopes for the long-term global outlook held sway over worries about the fast-spreading Delta variant and expectations the Federal Reserve will soon begin withdrawing its vast financial support.
After a tepid lead from Wall Street, most of Asia enjoyed gains.
Hong Kong led the pack, rising more than one percent as Chinese tech firms—which have been battered in recent weeks by Beijing’s crackdown—saw some much-needed buying interest, while Shanghai also enjoyed healthy gains.
Tokyo and Singapore were both in the green as they reopened after a three-day weekend, while Sydney, Wellington, Mumbai and Bangkok were also in the green.
Seoul, Taipei and Jakarta were lower.
While vaccinations are being rolled out, infection rates continue to climb around the world, forcing some governments—particularly China and Australia—to impose fresh lockdowns and other containment measures.
That has led some observers to re-evaluate their growth outlooks.
However, at the same time, the US recovery appears to be on track, with the economy adding more than 1.8 million jobs in June and July and some of the world’s top companies reporting healthy earnings.
With inflation hitting multi-year highs, the Fed is coming under pressure to prevent prices from running away by tapering the ultra-loose monetary policies put in place at the start of the pandemic, with forecasts for an interest rate hike in late 2022.
On Monday, Atlanta Fed President Raphael Bostic said the bank’s goals of taming unemployment and long-term hot inflation were close.
“We are well on the road to substantial progress toward our goal,” he told reporters, calling July’s blockbuster jobs figures “definitely quite encouraging in that regard.”
Analysts said the likelihood that the Fed will taper its vast bond-buying scheme was strong. US inflation figures due Wednesday are being keenly awaited. With AFP
