The stock market closed virtually flat Thursday in dull trading, with investors waiting for the next catalyst that could sustain the recent rally.
The Philippine Stock Exchange Index added 2.93 points, or 0.04 percent, to 7,268.38 on a value turnover of P5.4 billion. Gainers beat losers, 107 to 75, with 53 issues unchanged.
ISM Communications Corp., a member of the group declared by the government as the country’s third major telecommunications firm, advanced 7.8 percent to P6.79, while Filinvest Development Corp. of the Gotianun Group, climbed 4.9 percent to P8.50.
8990 Holdings Inc., a mass housing developer, rallied 4 percent to 7.59, while Security BankCorp., the sixth-biggest lender in terms of assets, rose 2.6 percent to P155.
The rest of Asian equities, meanwhile, chalked up modest gains Thursday in light trading ahead of the US Thanksgiving holiday, following a rebound in energy and tech stocks on Wall Street.
But analysts cautioned the tepid uplift in New York Wednesday should not be interpreted as a sign of the start of a recovery from the recent carnage on global stock markets.
Investor sentiment remains fragile following the volatility that has swept markets since October, while the OECD has warned that the world economy has peaked and faces a slowdown as it confronts the Trump administration’s trade war and tighter monetary conditions.
The dollar slipped against the euro and the pound amid reports the Federal Reserve may pause future interest-rate hikes, although the greenback recovered earlier losses against the yen.
Crude prices resumed their downward trajectory Thursday, after a brief recovery on Wednesday.
The commodity has fallen by almost 30 percent from four-year highs touched at the start of October. Oil analysts attribute the pullback to high supply as well as a weakening global growth outlook.
“This half-hearted recovery effort should not be confused with anything other than pre-holiday scramble doing little more than what amounted to chasing oil prices,” said Stephen Innes, head of Asia-Pacific trade at OANDA.
“Markets have been remarkably muted, even by holiday standards.”
He added the post-Thanksgiving Black Friday shopping spree would be “the ultimate litmus test of US consumer confidence heading into the holiday season.”
Ahead of a Friday holiday in Japan, the Nikkei rose 0.65 percent as investors took heart from a weakening of the yen earlier in the day.
However, fresh data suggested the world’s third-largest economy is continuing to struggle in its years-long battle with deflation.
Elsewhere, Hong Kong rose and Shanghai closed slightly down, while Sydney was the standout regional performer, gaining 0.9 percent. Shares in Singapore were up even as the trade-reliant city-state braces for slower economic growth next year as demand in key markets in Asia weakens.
Inflation in Japan stood at one percent in October, unchanged from the previous month, according to government data.
Japan has battled deflation for many years and the central bank’s ultra-loose monetary policy appears to have had limited impact. With AFP