Stocks retreated from a one year-high and ended a four-day rally, on profit taking and following losses in regional markets.
The Philippine Stock Exchange index, the 30-company benchmark, dipped 186 points, or 2.4 percent, to close at 7,536.65 Thursday. Despite the loss, the bellwether was still up 8.4 percent this year.
The heavier index, representing all shares, also lost 73 points, or 1.6 percent, to settle at 4,520.07, on value turnover of P6.3 billion. Losers outnumbered gainers, 122 to 74, while 47 issues were unchanged.
Four of the 20 most active stocks ended in the green, led by DoubleDragon Properties Corp. which jumped 8.5 percent to P70 and Bloomberry Resorts Corp. which climbed 8.1 percent to P5.19. Budget carrier Cebu Air Inc. gained 1.3 percent to P102.10, while developer Megaworld Corp. rose 1.1 percent to P4.50.
Meanwhile, Asian stocks retreated from a six-week high as a strengthening yen pressured Japanese shares, overshadowing gains from energy producers amid a rally in crude.
Global equities headed for a fourth weekly advance, with the S&P 500 Index edging closer to an all-time high amid speculation borrowing costs will remain lower for longer. Federal Reserve Chair Janet Yellen signaled Monday that policy makers won’t prematurely raise interest rates. Markets in China, Hong Kong and Taiwan are shut for holidays on Thursday.
“Monetary policy remains accommodative globally and expectations for a rate hike in the U.S. has been pushed back,” James Woods, an analyst at Rivkin Securities in Sydney, said by phone. “That should be supportive of equities. However, a delay in the Fed rate hike is strengthening the yen, providing a headwind for Japan.”
Central banks are in the spotlight, with policy decisions from the Fed and the Bank of Japan scheduled for next week. Futures traders lowered the possibility of a U.S. interest rate hike by July to 18 percent after Yellen said Monday that the world’s biggest economy is strengthening enough to withstand gradual increases in borrowing costs.
Financial markets in China, Hong Kong and Taiwan are closed Thursday for public holidays.
Japanese stocks retreated Thursday on the back of a stronger yen as traders consider the prospect of low US interest rates until the end of the year, while easing Chinese producer inflation offered hope for the world’s number two economy. With AFP, Bloomberg
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