Stocks retreated Wednesday to snap a seven-day rally that saw the benchmark index soaring to over three-month high in the previous session.
The Philippine Stock Exchange Index declined 31.65 points, or 0.5 percent, to 6,818.99 on a value turnover of P8 billion. Gainers, however, beat losers, 117 to 94, with 34 issues unchanged.
Bank of the Philippine Islands of the Ayala Group, the third-biggest lender in terms of assets, fell 2.7 percent to P93, while sister firm Ayala Land Inc. dropped 2.6 percent to P29.40.
PLDT Inc. of Indonesia’s Salim Group, the largest telecommunications firm, slipped 2.7 percent to P1,708, but BDO Unibank Inc. of the Sy Group, the biggest bank, climbed 2.2 percent to P128.20.
The rest of Asian markets rose with oil prices on Wednesday following a rally on Wall Street, with Asia given a lift after China’s premier called for more measures to boost the struggling economy.
Investors remain on edge as they try to navigate an uncertain landscape while central banks hike interest rates to fight runaway inflation, in turn fueling fears of a possible recession.
Hong Kong and Shanghai enjoyed healthy gains, while Tokyo, Sydney, Singapore, Wellington, Taipei, Mumbai and Bangkok were also up—though Seoul dipped.
While officials at the Federal Reserve and its peers are expected to keep tightening monetary policy for the rest of the year, talk is building that they will be able to ease up in 2023—and maybe even cut rates—if the pace of price rises comes down.
Minutes from the Fed’s July meeting will be pored over when they are released later in the day, with investors hoping for some insight into policymakers’ thinking and an idea of its plan for next month’s gathering.
“We expect the … minutes to have a hawkish tilt,” Carol Kong, at Commonwealth Bank of Australia, said. “We would not be surprised if the minutes show (officials) considered a 100 basis points increase in July.”
The bank lifted rates by 75 points in both June and July.
Forecast-beating earnings from retail titans Walmart and Home Depot provided optimism that US consumers remain resilient even as inflation remains elevated and borrowing costs are going up.
In a sign of the work ahead for banks in battling inflation, figures Wednesday showed prices rose in Britain last month at their fastest pace since 1982 as food costs rocketed. The news sent sterling sharply higher against the dollar.
After a slow start Asia picked up on the positive lead from Wall Street, helped by hopes for some stimulus by finance chiefs in China.
The country’s central bank announced a surprise interest rate cut Monday and a report Tuesday said Premier Li Keqiang called on six key provinces—accounting for about 40 percent of the economy—to bolster pro-growth policies.
The moves come after the latest batch of data showed the economy remained under pressure.
Analysts said markets are concerned about the debilitating impact of lockdowns and other strict containment measures implemented as part of the government’s zero-COVID strategy. With AFP