The stock market closed nearly flat again Monday in mixed trading, with investors waiting for a catalyst to push the benchmark index higher.
The Philippine Stock Exchange Index slipped 3.97 points, or 0.05 percent, to 7,520.40 on a value turnover of P5.9 billion. Losers edged gainers, 98 to 93, with 45 issues unchanged.
Metropolitan Bank & Trust Co., the second-biggest lender in terms of assets, fell 1.5 percent to P79.80, while SM Investments Corp. of retail tycoon Henry Sy Sr. dropped 1.3 percent to P940.
Conglomerate San Miguel Corp., however, climbed 6.5 percent to P151.20, while First Gen Corp. of the Lopez Group advanced 4.6 percent to P20.40.
The rest of Asian markets mostly rose Monday as traders look ahead to a key meeting of the Federal Reserve, and a Chinese policy-setting conference this week.
However, there is still caution on trading floors after Friday’s sharp sell-off fueled by concerns over China’s economy, and despite a tweet from Donald Trump suggesting a trade deal could be hammered out between Washington and Beijing.
Hong Kong rose 0.1 percent in the afternoon, Shanghai climbed 0.2 percent and Tokyo finished 0.6 percent higher, while Sydney put on one percent and Singapore jumped 1.2 percent.
Seoul and Taipei each gained 0.1 percent while Wellington added 0.3 percent. There were also gains in Mumbai.
Steve Goldman, fund manager at Kapstream Capital, told Bloomberg TV in Sydney that “we’re going to see a lot of volatility” in the new year because of global uncertainty.
While there are signs the world’s top two economies are beginning to move towards a resolution in their bitter tariffs spat, there are increasing concerns about the global outlook following another dour set of indicators out of China.
A string of below-par readings this year have highlighted a slowdown in the Asian giant and observers are forecasting leaders will unveil fresh measures to pep up the economy, which is on course for another year of relatively weak growth.
A speech from President Xi Jinping on Tuesday to mark 40 years since China’s economy began opening up will be closely watched, and that is expected to be followed by the start of a conference setting out the country’s 2019 economic plan.
“We should expect a raft of stimulus measures from China policymakers in an attempt to stabilise the domestic economy,” said Stephen Innes, head of Asia-Pacific trade at OANDA.
The Fed will conclude its rate-setting policy meeting Wednesday and while expectations are for another hike in borrowing costs, comments from chairman Jerome Powell will be closely watched for an idea of its plans for 2019.
In light of the China-US trade row and signs of weakness in the global economy, the bank has sounded a little more dovish in recent weeks, fueling speculation it will slow down its pace of rate hikes—which has provided some much-needed support to equities.
“The upcoming (Fed) meeting and China’s policy-setting meeting, have been the most actively discussed topics around the markets,” Innes added. “And both events have a smoothing effect on risk sentiment.” With AFP