Stocks fell Monday, ignoring another record in Wall Street over the weekend, as investors opted to wait for new catalysts that will fuel a new rally.
The Philippine Stock Exchange Index sank 61.82 points, or 1 percent, to 5,943.58 on a value turnover of P10.3 billion. Losers beat gainers, 112 to 72, with 59 issues unchanged.
SM Prime Holdings Inc. of the Sy Group declined 3.2 percent to P30, while major property developer Ayala Land Inc. of the Ayala Group dropped 2.4 percent to P30.60.
JG Summit Holdings Inc. of the Gokongwei Group shed 2.3 percent to P62, but PLDT Inc., the biggest telecommunications firm, rose 2.3 percent to P1,400.
The rest of Asian markets rose Monday, tracking another record on Wall Street as the US appeared to tone down its anti-China rhetoric, while traders turn their attention to a meeting of central bankers later in the week.
Hong Kong led the gains, boosted by tech giant Tencent after reports said the White House is looking to reassure US firms they can still do business with the company’s WeChat messaging app in China, despite a crackdown on the service at home.
Donald Trump’s decision this month to impose sweeping restrictions against WeChat and TikTok, citing security concerns, ramped up tensions between the two superpowers that have been strained by various issues including coronavirus and Hong Kong.
The reports helped push the tech-heavy Nasdaq to yet another record on Friday, while the broader S&P 500 also reached a new high.
Hong Kong led gains across Asia, rallying 1.5 percent with traders also cheered by a pledge from China’s banking regulator that it would continue to back the city as a financial hub, after concerns were raised following the imposition of a new security law last month.
Shanghai put on 0.2 percent and Tokyo added 0.3 percent. Seoul piled on more than one percent while Sydney and Taipei each gained 0.3 percent. Mumbai, Singapore, Wellington and Bangkok were also in positive territory.
Buying was also boosted by news that Trump had expanded the use of a coronavirus treatment using plasma from people who had recovered from the disease.
“Not the COVID-19 cure all the world is hoping for, but it is another positive step to help patient recovery time and get people back on their feet quicker,” said AxiCorp’s Stephen Innes.
Investors will also be keeping an eye on this week’s virtual gathering of central bankers, hoping for some guidance on their plans for monetary policy after they provided a wall of cash to support the global economy—and stock markets—during the crisis. With AFP
The main attraction is a speech by Federal Reserve chief Jerome Powell that is slated to take place on Thursday.
“More clarity will no doubt be sought via this week’s Jackson Hole symposium,” said Ben Emons, of Medley Global Advisors.
“Meanwhile, we expect the enforcement meeting to proceed smoothly within the next several weeks,” he said in reference to a review of the China-US trade pact.
Traders are also keeping tabs on Washington, where US lawmakers are struggling to reach an agreement on a fresh stimulus for the US economy. With AFP