Stocks fell Tuesday to join the rest of Asian markets on fears that Russia is about to invade Ukraine.
The Philippine Stock Exchange Index lost 51.21 points, or 0.7 percent, to 7,309.94 on a value turnover of P8.03 billion. Losers beat gainers, 106 to 75, with 56 issues unchanged.
Fiber broadband provider Converge ICT Solutions Inc. dropped 5.9 percent to P25.50, while AC Energy Corp. of the Ayala Group sank 4.6 percent to P8.20.
Solar Philippines Nueva Ecija Corp., or SPNEC, which is building the biggest solar farm in Southeast Asia, declined 4.6 percent to P2.09, while SM Prime Holdings Inc. of the Sy Group fell 4 percent to P36.50.
Meanwhile, Asian markets mostly fell again Tuesday but early signs that Ukraine tensions could be easing boosted European stocks and sent oil prices down.
Tokyo retreated as investors brushed off data showing Japan’s economy rebounded in the final three months of 2021, while there were also losses in Hong Kong, Sydney, Singapore, Seoul, Wellington and Taipei, but Shanghai, Mumbai, Bangkok and Jakarta edged up.
Equities have been in turmoil after US national security advisor Jake Sullivan warned last week that Russia could storm into Ukraine “any day now,” having amassed more than 100,000 troops on its border in recent weeks.
Western powers have drawn up a series of tough sanctions against Moscow in the event of an invasion but there is a big worry that such a move would have economic consequences since the two countries are key sources of vital commodities including oil, gas and wheat.
The price of each of them has soared in recent weeks.
However, while Washington continues to fret, there was a glimmer of hope that recent diplomatic efforts could pay off, with Russian foreign minister Sergei Lavrov saying there was “always a chance” for agreement with the West.
In a televised meeting, he told President Vladimir Putin that talks with US and European leaders showed enough of an opening for progress on his goals, adding: “I would suggest continuing.”
German Chancellor Olaf Scholz was due in Moscow on Tuesday for talks with Putin.
Hopes were also given a lift after a Russian defense ministry spokesman said some forces on the border were beginning to return to their bases.
“The geopolitical risks still remain elevated as Russian troops remain at the Ukrainian border, but the risk of military conflict happening this week appears to have eased,” said OANDA’s Edward Moya.
The exchange between Putin and Lavrov improved the mood on markets slightly, helping Wall Street off its intra-day lows, though all three main indexes ended in negative territory for a second day.
Oil prices fell around two percent at one point before paring the losses, though they remain at more than seven-year highs and within touching distance of $100 a barrel.
The long-running saga over the Fed’s plans for fighting inflation—which is at a 40-year high—were also still on traders’ minds, with the central bank expected to hike rates next month but speculation rife over how much it will move and how many more times.
St Louis Fed President James Bullard said Monday officials needed to be decisive in their actions, telling CNBC “our credibility is on the line here.” With AFP
