Stocks fall for 3rd  straight day; Monde Nissin rallies

The stock market declined for the third straight day Wednesday on renewed worries over rising COVID-19 infections a day ahead of looser quarantine restrictions in Metro Manila.

The Philippine Stock Exchange Index fell 40.16 points, or 0.6 percent, to 6,880.20 on a value turnover of P7.6 billion. Losers overwhelmed gainers, 128 to 64, with 51 issues unchanged.

Globe Telecom Inc., the second-biggest mobile phone company, retreated 4.2 percent to P3,040, while major property developer Ayala Land Inc. decreased 3 percent to P32.60.

Noodles maker Monde Nissin Corp., however, climbed 4 percent to P19, while Aboitiz Power Corp. of the Aboitiz Group advanced 5.2 percent to P30.30.

The rest of Asian markets sank Wednesday as a slowdown in US consumer inflation failed to overcome concerns about the fast-spreading Delta variant, while Hong Kong was dragged by a collapse in casino firms as Macau unveiled a planned crackdown on the sector.

Asian markets were under pressure, with below-par retail sales data further indicating China’s economy continued to slow in August.

Hong Kong led losses, with Macau casino operators collapsing as they became the latest to fall into China’s regulatory crosshairs.

Tokyo, Shanghai, Singapore, Sydney, Wellington, Taipei and Jakarta all fell, though Seoul, Bangkok and Mumbai managed gains.

After a bright start to the month, equities around the world have gone into reverse in recent sessions as confidence is shaken by the virus, with a number of countries seeing a worrying jump in new cases that have forced some, including China, to reimpose tough containment measures.

Investors are also having to grapple with a range of other issues including Federal Reserve plans to taper monetary policy, China’s regulatory crackdown on private enterprises and a possible default by Chinese property giant Evergrande, which is teetering under debts of more than $300 billion.

Data Tuesday showing US consumer prices rose last month at a slower pace than expected soothed concerns that inflation could force the Fed to begin winding down its market-supporting policies earlier than thought.

The reading had taken on particular importance after producer prices—what firms pay at the factory gate—hit a record high in August owing to rising demand and tighter supplies.

The figures showed a slight dip, appearing to back up Fed officials’ insistence that the sharp rises were temporary because of the reopening and short-term supply issues.

But US investors shrugged at the news and sent all three main indexes into the red.

Analysts pointed out that the easing came on the back of concerns about the spread of the Delta variant, which is sending infection rates surging. That led to a sharp drop in airline fares, while used car sales—a major cause of recent inflation spikes—also fell.

However, National Australia Bank’s Rodrigo Catril said: “There are still many factors suggesting inflation is unlikely to ease significantly. Inflation remains strong for food, housing and other goods.

“The decline in airline fares and hotel room rates are likely to reverse as the Delta wave fades.” With AFP