Stocks fell for a second day while the peso advanced ahead of the release of the third-quarter gross domestic product growth and as investors took profit from recent gains.
The PSE index, the 30-company benchmark, dropped 47 points, or 0.8 percent, to close at 6,241.68, as four of the six subsectors declined.
The broader all-share index also lost 15 points, or 0.5 percent, to settle at 3,292.74 on a value turnover of P5.6 billion. Losers outnumbered gainers, 95 to 84, while 39 shares were unchanged.
Three of the 10 most active stocks ended in the green, led by Ayala Corp. which climbed 2.8 percent to P669.00 and Globe Telecom Inc. which added 1.2 percent to finish at 2,298.00. Ayala Land Inc. inched up 0.2 percent to P26.05
Meanwhile, the peso strengthened to a week high against the US dollar and returned to the 57 territory amid expectations that the Bangko Sentral ng Pilipinas would increase by 75 basis points the policy rate in its meeting next week.
The peso closed at 57.99 against the greenback, stronger than 58.275 on Tuesday. Total volume traded reached $1.107 billion, up from $954.9 million on Tuesday.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said earlier the dollar declined against major global currencies after the financial markets priced in another, but smaller, 50 bps Fed rate hike on Dec. 14.
“The relatively stable peso exchange rate [was] also brought about by signals recently on local policy rate hikes of as much as 0.75 on the next rate-setting meeting on Nov. 17,” Ricafort said.
Asian stocks lost momentum on Thursday as factory gate prices in China fell for the first time in nearly two years.
Shares in Tokyo, Hong Kong and Shanghai edged up at the open as votes were counted in crucial US midterm elections that will shape the political fortunes of President Joe Biden. But they soon fell after official data from China showed the world’s second-largest economy languishing under its strict zero-Covid policy.
Markets climbed in New York and Europe on Tuesday, with Biden’s Democrats facing a struggle to hang on to control of Congress, and polls predicting a Republican victory that could pave the way for a White House comeback bid by Donald Trump.
But that predicted Republican wave failed to materialize in elections fought against a backdrop of stubbornly high inflation.
By Wednesday afternoon in Asia, all eyes were on a handful of Senate races including in Georgia, Pennsylvania, Nevada, Arizona and Wisconsin, with a single seat enough to swing control of the Senate.
Market players were also awaiting key US inflation data due Thursday, causing the dollar to retreat along with the midterms as investors’ risk appetite increases, analysts said.
Tokyo closed down 0.6 percent and Shanghai ended 0.5 percent lower, while Hong Kong stocks lost nearly two percent in afternoon trade after a recent run of rallies.
Other Asian markets were mostly higher, with Taipei jumping 2.2 percent, Seoul gaining 1.1 percent and Singapore up 0.5 percent.
Sydney rose 0.6 percent and Bangkok lost 0.4 percent, while Jakarta was flat.
Speculation over how long Beijing will keep its harsh lockdown-and-testing Covid policies has fueled volatility in Chinese markets, despite the government vowing it will not change course.
The restrictions have taken a toll on the economy. China’s producer price index (PPI) fell by 1.3 percent on-year in October, pushing it into negative territory for the first time since December 2020.
The consumer price index—the main gauge for retail inflation—rose 2.1 percent on-year in October, moderating slightly from September’s two-year high of 2.8 percent.
“The economy’s slowing is confirmed by the CPI data,” Iris Pang, chief economist for Greater China at ING Wholesale Banking, told AFP. “I don’t see any good news from China.”
Stephen Innes of SPI Asset Management agreed that the Chinese data painted “a rather gloomy picture, with PPI remaining deflationary and CPI much weaker than expected, pointing to waning demand”.
Oil prices were driven lower during the day, but recovered in the afternoon.
“Rolling lockdowns in China, as Covid cases rebound, are catching oil traders leaning the wrong way,” Innes said. With AFP