Philippine stocks ended lower Thursday, mirroring the mixed results of other markets as investors digest the latest US inflation report.
The Philippine Stock Exchange index ended at 6,641.35, down by 1.36 points, or 0.02 percent, while the broader all shares-index closed at 3,756.07 lower by 2.48 points, or 0.07 percent.
US inflation rose to 2.7 percent in November, which was within economists’ expectations, boosting expectations of another rate cut by the Federal Reserve.
“The local market’s sideways movement for the day ended in the negative territory as investors maintained a cautious stance, quickly taking advantage of the intra-day gains,” Philstocks Financial Inc. research head Japhet Tantiangco said.
He said the weakening of the peso against the US dollar also weighed on the bourse. The peso closed at 58.24 against the dollar Thursday, slightly up from 58.28 Wednesday.
Value turnover improved to P5.87 billion, above the year-to-date average of P5.17 billion. Foreigners were net sellers, with net outflows at P381.81 million.
The services led the sub-sectors, increasing 0.72 percent. Properties lost the most, declining 0.98 percent. Decliners edged advancers, 96 to 82.
Century Pacific Food Inc. was the top index gainer, advancing 4.90 percent to P44.95, while ACEN Corp. was the worst index performer, dropping 5.96 percent to P3.47.
Meanwhile, equities mostly rose in Asian trade Thursday following another record day on Wall Street fueled by inflation data that reinforced expectations for a US interest rate cut next week, while traders also remained hopeful for more measures to stimulate China’s economy.
Seoul’s Kospi pushed higher for a third straight day, eating further into the losses sustained in a sell-off that came in the wake of South Korean President Yoon Suk Yeol’s short-lived martial law declaration.
Hopes that the Federal Reserve will lower borrowing costs for a third time in a row next week were bolstered Wednesday by figures showing the US consumer price index rising in line with expectations in November.
While the gauge continues to sit above the central bank’s two percent target, swaps markets indicate there is a 98 percent chance policymakers will make the reduction.
On Wall Street, the Nasdaq ended above 20,000 points for the first time, while the S&P 500 was a whisker away from its own record.
However, analysts warned the outlook for 2025 was less clear.
“Evidence in recent months suggests the decline in inflation has lost momentum while economic activity and the labour market have remained resilient,” said National Australia Bank senior forex strategist Rodrigo Catril.
“These dynamics suggest that after cutting in December, the Fed looks set to sit on the sidelines for a while with an increasing risk that the coming pause won’t be a couple of months, but rather a couple of quarters.”
Adding to the uncertainty is the presidency of Donald Trump, who takes back the White House next month and has pledged to slash taxes and regulations and ramp up tariffs — measures some warn could reignite prices.
In Asian trade, Hong Kong and Shanghai rallied as dealers kept an eye on China amid hopes that leaders will unveil more help for the economy, which is struggling under the weight of weak consumer spending and a chronic property crisis.
– Yoon stays defiant –
President Xi Jinping and other key officials were reportedly holding their Central Economic Work Conference to hash out plans to boost growth next year.
Officials announced on Monday their first major shift in policy for more than a decade, saying they would “implement a more active fiscal policy and an appropriately relaxed” strategy.
That sparked hopes for more interest rate cuts and the freeing up of more cash for lending.
Beijing has already unveiled a raft of measures to kickstart growth but observers said there was concern at the lack of concrete action.
The “cautious market response in China suggests that investors are sceptical about the government’s commitment to substantial, direct financial interventions — essentially the ‘helicopter money’ that many believe is necessary to invigorate the economy”, said SPI Asset Management’s Stephen Innes.
Meanwhile, it emerged that economic officials in outgoing President Joe Biden’s administration would meet their Chinese counterparts for talks on Thursday in a final effort to strengthen ties before Trump returns.
Shares in Seoul jumped more than one percent as lawmakers prepare for a second impeachment vote on Yoon at the weekend after the first fell short on Saturday. The leader of his own party has urged members to attend the meeting and vote “according to their conviction and conscience”.
Still, the president remained defiant and vowed to “fight with the people until the very last minute”.
The won continues to hover around two-year lows of 1,430 per dollar amid the uncertainty sparked by the December 3 crisis.
Among other Asian markets, Tokyo gained more than one percent on a weaker yen, while Singapore, Taipei and Bangkok also rose. There were losses in Sydney, Wellington, Mumbai and Jakarta. Manila was flat.
The euro remained under pressure ahead of an expected rate cut by the European Central Bank later on Thursday, while France’s President Emmanuel Macron fights to appoint a new prime minister following the removal of Michel Barnier last week.
London rose at the open, along with Paris and Frankfurt. With AFP
