The Philippine stock market inched up Tuesday amid tepid trading as investors stayed on the sidelines while waiting for fresh catalysts.
The 30-company Philippine Stock Exchange index rose 6.53 points, or 0.09 percent, to close at 7,413.16, while the wider all-shares index picked up 5.21 points, or 0.13 percent, to end at 4,085.50.
Market sentiment was also dragged by decline in US stocks, geopolitical risks and sluggish peso.
Philstocks Financial Inc. research head Japhet Tantiangco said the stock market reflected investors’ expectations of good third-quarter corporate results and continuous monetary policy easing by the Bangko Sentral ng Pilipinas.
The gains were tempered by the rise of the US’ treasury yields and the continued weakening of the local currency against the dollar. Data showed that the peso fell to 57.88 against the US dollar Tuesday from 57.59 Monday.
Net value turnover at the PSE reached P5.24 billion, slightly above the year-to-date average of P5.20 billion. Foreigners were net sellers, with net outflows amounting to P16.04 million.
Among the sectors, the services rose the most, adding 1.21 percent. The banks shed 0.50 percent. Advancers edged decliners, 99 to 94.
Monde Nissin Corp. was the top index gainer, jumping 3.94 percent to P11.08, while mining firm Nickel Asia Corp. was at the bottom, falling 2.88 percent to P3.37.
Meanwhile, most Asian markets fell Tuesday after a negative lead from Wall Street fueled by profit-taking, while traders try to ascertain the outlook for US interest rates.
Comments from top Federal Reserve officials suggesting they would like to see a slower pace of rate cuts tempered hopes for another bumper cut at the bank’s next meeting, while Middle East worries pushed gold to a new record.
With few catalysts to drive business, investors took a step back Tuesday after the Dow and S&P 500 came off all-time highs, with concerns growing that stocks may be overbought and due a correction.
Focus is now on the latest earnings season, with tech titans Alphabet and IBM due to announce over the next two days, while Boeing, Coca-Cola, General Motors and L’Oreal are also in the pipeline.
Bets on another 50-basis-point rate cut by the Fed have been scaled back after a recent run of strong US data including on jobs creation, while a number of decision-makers have looked to temper expectations.
Kansas City Fed boss Jeffrey Schmid backed a slower pace of easing, which he said would allow it to find a neutral level.
“While I support dialing back the restrictiveness of policy, my preference would be to avoid outsized moves, especially given uncertainty over the eventual destination of policy and my desire to avoid contributing to financial market volatility,” he said in prepared remarks Monday.
He was joined by his Dallas counterpart Lorie Logan and Minneapolis Fed boss Neel Kashkari, who wanted officials to proceed carefully.
Still, San Francisco president Mary Daly saw the bank continuing to cut, saying: “So far, I haven’t seen any information that would suggest we wouldn’t continue to reduce the interest rate.”
After the tepid lead from Wall Street, Asia struggled.
Tokyo dropped more than one percent, even as the yen softened against the dollar to sit at its weakest level since early August.
London, Paris, Sydney, Seoul, Singapore, Wellington, Mumbai, Bangkok, Taipei and Jakarta also fell.
However, Hong Kong and Shanghai rose, with dealers hoping for more stimulus from China’s government after a slew of announcements over the past month. Frankfurt also rose.
Gold continued to rise to new highs, hitting a record $2,740.59 at one point on Tuesday, as traders sought out the safe haven amid worries about the Middle East crisis as Israel considers its response to Iran’s missile barrage this month.
Uncertainty over the US presidential election next month has also helped fuel bullion’s rally.
Concerns about a possible wider conflict in the Middle East lifted oil prices at the start of the week, though they dipped slightly in Asian trade Tuesday. With AFP
Be the first to comment