Philippine stocks extended their losses for a second straight trading day on worries about the depreciation of the peso against the US dollar.
The Philippine Stock Exchange index dropped 26.44 points, or 0.40 percent, to close at 6,607.22, while the all-shares index declined 11.82 points, or 0.33 percent.
“The peso’s weakening could have many negative impacts on our economy, one of which is the upward measure it may exert on inflation if this trend persists,” Philstocks Financial Inc. research analyst Claire Alviar said.
While the peso exchange slightly recovered on Wednesday after falling for three straight days, it remained at the 58-a-dollar range. It closed at 58.06 against the greenback.
Regina Capital Development Corp. head of sales Luis Limlingan said investors also opted to stay on the sidelines while waiting for the minutes of the recent Federal Open Market Committee meeting and April home sales data from US.
Value turnover was thin at P4.7 billion, while foreign investors were net sellers by P644.6 million.
Sectoral indices ended mixed, with services and holding firms rising by 0.90 percent and 0.17 percent, respectively. Property registered the biggest decline by 1.39 percent, followed by industrial by 1.18 percent, financials by 1.16 percent and mining and oil by 1.07 percent.
Meanwhile, Asian markets were mixed, and European stocks fell Wednesday as investors struggled to revive a recent rally across markets as they turned their focus on the release later in the day of earnings from US tech darling Nvidia.
Record closes for the S&P 500 and Nasdaq provided a little inspiration, even with few catalysts to drive buying, with minutes from the Federal Reserve’s May policy decision possibly giving an insight into officials’ thinking with regard to interest rates.
A slowdown in US inflation and China’s announcement last week of plans to support its crucial but battered property sector have helped propel equities but, with that euphoria petering out, traders are taking a breather.
The next major driver could be the results from Nvidia — the third-largest US company by market capitalization — which is being seen as a gauge of overall market sentiment.
The chip-making giant’s stock price has rocketed in recent years — its shares are up around 90 percent in 2024 — with the high-end processors prized by firms looking to get ahead in the booming artificial intelligence sector.
However, there is a worry that the figures do not match sky-high expectations, which some observers say could spark a hefty sell-off, particularly among market-heavyweight tech firms.
After the previous day’s retreat, Asian markets were mixed as a morning rally ran out of steam.
Tokyo, Hong Kong, Sydney, and Manila edged down, while Wellington, Taipei, Mumbai and Jakarta rose. Shanghai and Seoul were flat.
London fell after data showed UK inflation had eased to its slowest pace since July 2021 but at a faster clip than expected. That caused a spike in the pound against the euro and dollar as it dented optimism that the Bank of England would soon cut interest rates.
Paris and Frankfurt also dropped.
Investors are also looking forward to getting an eye on the minutes from the Fed’s May 1 rate decision, which will be pored over for an idea about the thought process as decision-makers considered three straight months of above-forecast consumer inflation data.
While the April reading on prices showed a slowdown, a number of central bank officials are reluctant to begin cutting too early.
Fed Governor Christopher Waller said he wanted to see “several” months of additional data, while Atlanta boss Raphael Bostic warned that “one number is not a trend” and he did not see a reduction before the fourth quarter.
Bostic’s comments were echoed by his Cleveland and Boston counterparts Loretta Mester and Susan Collins.
“I think this is a moment or a period when patience really matters,” Collins said. “I think the data has been very mixed.
“It’s going to take longer than I had previously thought.” With AFP