Stocks slipped Thursday as some investors continued to cash in on recent gains while waiting for a new catalyst to push the market higher.
The Philippine Stock Exchange Index dropped 25.02 points, or 0.3 percent, to 7,790.91 on a value turnover of P6.5 billion. Losers beat gainers, 117 to 68, with 54 issues unchanged.
International Container Terminal Services Inc., the biggest port operator, fell 3.5 percent to P119, while Metro Pacific Investments Corp., which is into toll roads, water and electricity distribution, hospitals and infrastructure, declined 3.1 percent to P3.80.
Universal Robina Corp. of the Gokongwei Group, the largest snack food maker, slumped 3.3 percent to P140.20, while PLDT Inc., the biggest telecommunications firm, fell 2.8 percent to P1,042.
The rest of Asian markets, however, rose Thursday on renewed hopes for the China-US trade talks after a report said a deal could be finalized by the end of next week.
The story came a day after Donald Trump had poured freezing water on the prospects for an agreement by suggesting he would be happy waiting until after the 2020 presidential election before signing off on one.
It also provided a much-needed boost to investors following disappointing US data on jobs and the key services sector.
Hong Kong added 0.5 percent in the afternoon while Shanghai and Tokyo each closed 0.7 percent higher. Sydney put on more than one percent and Singapore gained 0.4 percent.
Wellington, Taipei, Mumbai and Jakarta also posted gains, though Seoul retreated.
Bloomberg News reported that US negotiators expected a deal to be completed before a new round of US tariffs on China is due to hit on December 15.
It quoted unnamed sources as saying Trump’s comments that he had no deadline and “in some ways, I like the idea of waiting until after the election” should not have been taken as a sign the talks had stalled.
Markets globally turned south following the remarks, with observers suggesting US bills supporting Hong Kong protesters and minority Uighurs in China had also dented the chances of a pact being signed.
AxiTrader’s Stephen Innes said weak US data played an important role in Trump’s thinking regarding the trade talks.
“These are critical chunks of the economy the president must defend, but the more vulnerable data also provides inferior optics for his election 2020 campaign,” he wrote in a note.
“If these gloomy forward economic gauges start to leak into the consumption and/or employment sectors, one would have to assume that President Trump, from a purely economic perspective, would be as motivated as (Xi Jinping) to table a trade deal sooner than later”, he said.
However, he added that “it really feels like we’re always walking up a down (escalator) when it comes to navigating these never-ending US-China hostilities.”
On the outlook for markets, National Australia Bank’s Ray Attrill said it was significant the US side was now talking about removing tariffs. With AFP