Stocks closed virtually flat again Wednesday as the market remained in consolidation mode in the absence of a catalyst that could nudge investors into buying.
The Philippine Stock Exchange Index slipped 1.56 points, or 0.03 percent, to 5,892.72 on a value turnover of P4.4 billion. Gainers edged losers, 92 to 90, with 56 issues unchanged.
NOW Corp. of the Velarde family fell 5.5 percent to P3.10, while International Container Terminal Services Inc. of tycoon Enrique Razon Jr. dropped 2.7 percent to P105.10.
MerryMart Consumer Corp., a supermarket chain owned by businessman Edgar Sia II, however, rose 4.7 percent to P3.14, while Jollibee Foods Corp., the biggest fast-food chain, climbed 4.2 percent to P138.10.
The rest of Asian investors, meanwhile, struggled to match their Wall Street counterparts Wednesday, with markets mixed as spiking infection rates, new containment measures and still no US stimulus fuel concerns about economic recovery.
Tokyo ended 0.1 percent down as investors returned from an extended weekend break, while Taipei, Singapore, Jakarta and Bangkok were also lower.
Hong Kong, Shanghai and Wellington eked out gains, however, while Sydney jumped more than two percent. Mumbai and Seoul were flat.
After a global rally since March’s nadir, gloom has descended on equities this month, with uncertainty leading into November’s presidential election and ongoing China-US tensions adding to the mix.
US stocks broke an extended run of losses Tuesday as traders went bargain hunting, while the technology sector was also boosted by the prospect of people being forced to stay at home again.
With a record of nearly two million new virus infections last week, leaders are fighting to prevent another explosion of cases that forced economically devastating national lockdowns around the world earlier in the year.
British Prime Minister Boris Johnson unveiled new steps that will from Thursday see English pubs and other hospitality venues close at 10 pm, while he also halted the planned phased return of fans to live sporting events that was due from October 1.
“To help contain the virus, office workers who can work effectively from home should do so over the winter,” the government said, despite fears for the wider economy as many city centers turn into ghost towns.
In Washington, Fed boss Jerome Powell warned Congress the world’s top economy would see a slower recovery if lawmakers did not push ahead with a fresh rescue package, noting that stimulus cheques and expanded unemployment payments moderated the impact of the virus earlier this year.
At the same testimony, Treasury Secretary Steven Mnuchin said there would be a strong rebound in the third quarter but admitted that “some industries particularly hard bit by the pandemic require additional relief.”
However, political hostilities appear to be worsening on Capitol Hill ahead of the election and there is little expectation that Democrats and Republicans will hammer out an agreement before then. That is despite fresh unemployment benefit supplements passed by Donald Trump in an executive order running out in some states. With AFP