The local stock barometer showed no signs of rebound Friday as the market plunged for a fifth straight trading day on corruption woes and a weaker peso.
The 30-company Philippine Stock Exchange index (PSEi) went down 15.16 points, or 0.25 percent, to end the week at 6,027.12. The wider all shares index dipped 8.70 points, or 0.24 percent, to 3,644.80.
The peso remained unchanged against the U.S. dollar, closing at 58.1 on Friday, the same level as Thursday.
“The local market declined for a fifth straight day as dismay over the Philippine flood control projects’ corruption issues continued to dampen sentiment,” said Japhet Tantiangco, research head at Philstocks Financial Inc.
“The negative cues from Wall Street and the depreciation of the peso below the P58 level against the dollar also contributed to the drop,” he added.
Trading remained thin, with value turnover reaching P4.74 billion.
Sectors ended mixed, led by mining and oil, which rose 0.71 percent, followed by financial and industrial, which advanced 0.66 percent and 0.22 percent, respectively. Property shed the most, down 1.55 percent.
ACEN Corp. was the day’s top gainer, as its share price increased 6.58 percent to P2.43. JG Summit Holdings Inc. was at the bottom, as its share price dropped 3.27 percent to P23.65.
Asian markets retreated on Friday as nagging uncertainty about the US interest rate outlook was compounded by data showing the world’s biggest economy faring much better than expected and fresh tariff warnings from President Donald Trump.
Asian investors looked set to end a largely disappointing week on a negative note following the third loss in a row for Wall Street, with concerns that stocks are overvalued after a lengthy rally adding to the mix.
Traders are also keeping a wary eye on Washington as lawmakers bicker over a funding package to keep the government running as a deadline approaches next week.
Equity markets are seeing a pullback in buying after a months-long advance from April’s lows. The Federal Reserve cut rates last week, citing a weakening labour market but warning that more reductions were not nailed on.
On top of that, the past week has seen top decision-makers at the bank offer varying views on the way forward, in light of stubbornly high inflation and soft jobs data, as well as concerns about the impact of Trump’s tariffs.
Data on Thursday showed second-quarter US economic growth hit 3.8 percent — instead of the 3.3 percent first thought — as consumers spent more than expected. The reading marks the fastest quarterly expansion for nearly two years.
The figures came ahead of Friday’s release of the Fed’s preferred gauge of inflation — the personal consumption expenditure (PCE) index — and next week’s nonfarm payrolls report.
All three main indexes on Wall Street ended in the red, falling each day since hitting record highs on Monday.
Tokyo, Hong Kong, Shanghai, Seoul, Wellington, Taipei, Mumbai, Singapore, Bangkok and Manila retreated, with Sydney and Jakarta edging up.
The dollar held gains after surging on the growth figures.
Pharma takes a hit
Sentiment was also weighed by Trump’s new tariffs on pharmaceuticals, big-rig trucks, home renovation fixtures and furniture.
From next Wednesday, “we will be imposing a 100% Tariff on any branded or patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America”, Trump wrote on his Truth Social platform.
He also threatened 25 percent levies on “all ‘Heavy (Big) Trucks’ made in other parts of the world”, for reasons including “National Security”.
Asian pharma firms retreated, with Shanghai Fosun shedding around six percent and South Korea’s Daewoong off more than three percent. Japan’s Daiichi Sankyo and Astellas Pharma were also well in the red. Sydney-listed CSL shed nearly two percent.
Sun Pharmaceutical Industries was a major loser in India’s Nifty 50 index and was down three percent, with other pharmaceutical stocks Cipla, Dr Reddy’s Laboratories, Lupin and Biocon all lower.
Key industry player India “could be spared” from the levies for now, according to MUFG analyst Michael Wan.
“It is still unclear how branded or patented pharmaceutical products will be defined, but our working assumption is that this will not incorporate generic drugs and pharmaceuticals shipped by the likes of India to the US,” he wrote in a note.
A lack of agreement in Washington on a bill to avert a government shutdown was also on traders’ radar, with Democrats and Trump’s Republicans at loggerheads over the spending plans.
“Republicans are seeking short-term extensions to funding at current levels, while Democrats have demanded more healthcare spending,” National Australia Bank’s Taylor Nugent said.
“There remains no obvious exit ramp as the 1 October deadline to avoid a US government shutdown approaches,” he said.
London, Paris and Frankfurt all rose. With AFP
