Stocks slip; URC, Ayala Land fall

The stock market fell for the second straight day Monday after investors turned cautious despite government’s decision to ease the quarantine restrictions in Metro Manila and nearby provinces.

The Philippine Stock Exchange Index shed 26.53 points, or 0.4 percent, to 6,518.64 on a value turnover of nearly P6 billion. Losers beat gainers, 120 to 86, with 48 issues unchanged.

Universal Robina Corp., the biggest snack food maker, dropped 3.3 percent to P137.30, while major property developer Ayala Land Inc. declined 1.3 percent to P34.05.

PLDT Inc., the largest telecommunications firm, slipped 1.2 percent to P1,240, but BDO Unibank Inc., the biggest lender in terms of assets, rose 2.1 percent to P103.50.

The rest of equities fell in Asia on Monday as investors awaited the next earnings season with high hopes for strong reports and outlooks as the recovery progresses, while the head of the Federal Reserve reiterated his view that the economy was improving but warned the virus still posed a risk.

Another record close on the Dow and the S&P 500 in New York was not enough of a catalyst to fuel buying in early trade, while a forecast-beating jump in US producer prices acted as a reminder that inflation will likely run hot for a few months.

The general view is that markets have more gains in them as vaccines are rolled out around the world and US President Joe Biden’s $1.9-trillion stimulus filters through to the economy, while another big spending package is in the works.

Still, Asia started the week on the back foot with Hong Kong losing one percent despite a surge of more than seven percent in Alibaba.

The e-commerce giant’s strong advance came despite the firm being hit with a record $2.78-billion fine by China over practices deemed to be an abuse of its dominant market position. Analysts said investors welcomed the end of the probe and the outlay will not likely hurt its operations.

And OANDA’s Jeffrey Halley said that while Alibaba rose, the news had a negative effect on traders more broadly. “Investors seem concerned that Alibaba will not be the last China tech giant in the fine firing line,” he said in a note.  

Tokyo, Shanghai, Sydney, Singapore Jakarta and Wellington were also well in the red, though Seoul and Taipei edged up slightly.

Mumbai tanked more than three percent as India sees a sharp rise in cases after several weeks of religious festivals, campaign rallies and lax mask-wearing. The country added 152,000 new infections Sunday to take its toll to 13.3 million.

Investors were also taking on the latest comments from Fed boss Jerome Powell, who said on CBS that the world’s top economy was getting back into gear, but he remained cautious.

“The outlook has brightened substantially,” he said. “And that’s the base case. I would say again though, there really are risks out there.

“The principal risk to our economy right now really is that the disease would spread again. It’s going to be smart if people could continue to socially distance and wear masks,” Powell said. With AFP