Philippines stocks declined for the third straight trading day, tracking Asian markets and the Wall Street.
The Philippine Stock Exchange index ended the week at 6,616.51, down 24.84 points, or 0.37 percent from previous trading, while the wider-all shares index lost 3.34 points, or 0.09 percent, to settle at 3,752.73.
The peso also traded weaker, closing at 58.47 against the US dollar Friday from 58.24 Thursday. Week-on-week, the local currency depreciated 1.27 percent as traders remained cautious ahead of the US Federal Reserve’s policy rate decision next week.
Asian stocks fell as Chinese leaders avoided providing details on its financial stimulus measures while US stocks eased after the US Producers Price Index (PPI) came in faster versus market estimates,
“The PPI went beyond expectations, driving the 10-year Treasury yield higher as investors anticipated the Fed’s policy meeting after an in-line consumer price index report,” Regina Capital Development Corp. head of sales Luis Limlingan said.
Value turnover was weaker than usual at P3.92 billion, with 103 advancers and 88 decliners.
Mining and oil index led sectors, rising by 0.91 percent, followed by services which went up 0.54 percent and financials by 0.36 percent.
Holding firms dropped 1.29 percent, industrial by 0.32 percent and property by 0.08 percent.
BDO Unibank Inc. rose 1.21 percent to P150, while Bank of the Philippines slipped 1.93 percent to P132.
Asian markets fell Friday as China’s latest vows to boost the beleaguered economy failed to stir much excitement, while traders looked ahead to a key Federal Reserve policy meeting next week.
A tepid week was on course for a damp finish, with Wall Street offering a negative lead after fresh data pointing to a pick-up in inflation.
Hong Kong and Shanghai both tumbled as investors shrugged at Beijing’s pledge to introduce measures aimed at “lifting consumption vigorously” as part of a drive to reignite growth in the world’s number two economy.
President Xi Jinping and other key leaders said they would implement a “moderately loose” monetary policy, increase social financing and reduce interest rates “at the right time”.
The annual Central Economic Work Conference was being closely watched for signs of more stimulus, though the announcement — which included stabilizing foreign trade and supporting the troubled property sector — was unable to boost sentiment.
The gathering came after Beijing began unveiling in September a raft of policies to reverse a growth slump that has gripped the economy for almost two years.
Julian Evans-Pritchard of Capital Economics said it remained unclear how big a boost there would be, adding that, “while we may get a near-term stimulus bounce, we’re still not convinced that policy support will prevent the economy from slowing further next year”.
And strategists at Bank of America Global Research said: “We await more evidence of implementation to assess the impact of such an indicated turnaround”.
Shares fell in Tokyo even as the Bank of Japan’s closely watched Tankan survey indicated a slight increase in confidence among Japan’s major manufacturers.
Sydney, Taipei, Bangkok, Jakarta and Manila also dropped while Singapore, Mumbai and Wellington edged up.
Seoul reversed early losses to extend to four days a rebound from the selling sparked by South Korean President Yoon Suk Yeol’s brief martial law declaration, as the focus there turns to a second impeachment vote planned for Saturday.
The advance helped the Kospi briefly rise back above the level it sat at before Yoon’s December 3 shock.
All three main indexes in New York closed in the red, with investors taking to the sidelines ahead of the Fed’s Wednesday gathering, when it is tipped to cut borrowing costs for the third time.
However, there is growing concern that with inflation still above the bank’s target — and president-elect Donald Trump pledging to cut taxes and impose tariffs — officials will not make as many next year as initially hoped.
“There is a risk that inflationary pressures could change the central bank’s plans,” said Charu Chanana, chief investment strategist at Saxo Markets.
“Recent (consumer price index) reports show that inflation is still sticky, and if Trump’s policies — like higher fiscal spending or tariffs — are enacted, inflation could re-accelerate.
“This would give the Fed less room to ease, potentially leading to a hawkish surprise for markets.”
The euro was stuck around two-year lows after the European Central Bank cut rates and president Christine Lagarde warned the eurozone economy was “losing momentum”, cautioning that “the risk of greater friction in global trade could weigh on euro area growth”.
The currency was also being dragged by uncertainty in Germany and France following the collapse of the governments of both countries, the eurozone’s biggest economies.
London was flat at the open as data showed the UK economy shrank 0.1 percent in October. Paris opened down and Frankfurt was up. With AFP
