spot_img
28.1 C
Philippines
Friday, March 29, 2024

Market closes flat; SMC advances

- Advertisement -

The stock market closed flat Tuesday in narrow trading, with investors positioning ahead of the release Thursday of the fourth-quarter data on the gross domestic product.

The Philippine Stock Exchange Index added just 1.21 points, or 0.02 percent, to 8,008.67 on a value turnover of P6.5 billion. Losers beat gainers, 115 to 104, with 34 issues unchanged.  

Conglomerate San Miguel Corp. climbed 4.4 percent to P170, while International Container Terminal Services Inc., the biggest port operator, rose 3.3 percent to P107.40

Manila Electric Co., the largest retailer of electricity, gained 2.4 percent to P371.40, but Puregold Price Club Inc. of retail tycoon Lucio Co fell 1.6 percent to P45.

The rest of Asian markets declined Tuesday as profit-takers stepped in following a recent run-up, while a report fueled worries about the progress of China-US trade talks.

- Advertisement -

While there were few catalysts to drive business and Wall Street was closed for a holiday investors are keeping tabs on developments in various issues including the US government shutdown, Brexit and China’s stuttering economy.

The optimism surrounding the trade talks was jolted by a Bloomberg News report that said the two sides were struggling to reach agreement on the crucial matter of   intellectual property, which is a key source of anger in Washington.

Also, China’s Xinhua news agency reported that President Xi Jinping had told top provincial leaders the Communist party “is facing long-term and complex tests in terms of maintaining long-term rule, reform and opening-up.” The comments suggest he is growing worried about the effects of slowing economic growth.

While headlines regarding talks earlier this month were upbeat, and eyes turn to another meeting including China’s top negotiator Liu He at the end of January, the Bloomberg story, referencing unnamed sources, provided a reality check.

“Recent signs suggest that China is struggling to sustain economic momentum, and risks of a hard landing are rising. If China falls back to earth, we will all feel the tremor,” economists at Northern Trust said in a note.

In afternoon trade Hong Kong was down 0.9 percent, while Shanghai finished 1.2 percent lower. Tokyo skidded 0.5 percent, along with Sydney while Singapore was 0.4 percent off and Seoul dropped 0.3 percent.

Wellington and Mumbai were also well down.

Concerns about the outlook led the International Monetary Fund to lower its growth forecasts for the global economy, citing the trade row, Brexit and other problems.

On currency markets the pound edged down against the dollar, having bounced on Monday after British Prime Minister Theresa May said she would try to hammer out changes to her Brexit deal that was roundly rejected by MPs last week.   

While there is no plan in place to leave the EU on March 29, markets are confident lawmakers will avoid a damaging no-deal Brexit, with options being touted being a delay to the leaving date and another referendum.

- Advertisement -

LATEST NEWS

Popular Articles