Stocks tumbled Friday, following a strong rebound a day earlier, as investors position ahead of a likely Federal Reserve interest rate hike this month.
The Philippine Stock Exchange index, the 30-company benchmark, fell 154 points, or 2 percent, to close at 7,553.76 Friday. This reduced the market’s total gains this year to 8.7 percent.
The broader all-share index, also dipped 55 points, or 1.2 percent, to settle at 4,558.17, on a value turnover of P13.8 billion. Losers outnumbered gainers, 102 to 78, while 47 issues were unchanged.
Three of the 20 most active stocks ended in the green, led by chemical producer D&L Industries Inc. which climbed 6.3 percent to P11.80. Oil retailer Petron Corp. gained 2.9 percent to P10.20, while Security Bank Corp. rose 0.1 percent to P248.60.
Major conglomerates posted heavy losses Friday, with Metro Pacific Investments Corp. sliding 4.7 percent to P6.50 and SM Investments Corp. declining 3.7 percent to P6.60. Aboitiz Equity Ventures Inc. also retreated 3.7 percent to P75.10.
Meanwhile, Asian markets on Friday tracked a rally on Wall Street. Equities globally have suffered during a volatile week as top Fed officials gave conflicting views on the need for tighter monetary policy, fueling uncertainty across trading floors.
But the chances of a move at next week’s policy meeting were diminished Thursday with the release of lacklustre retail sales figures as well as weak readings on industrial output and wholesales inflation.
All three indexes in New York surged more than one percent, which in turn filtered through to Asia, where trade was thinned by public holidays.
Tokyo ended 0.7 percent higher, while Sydney jumped one percent, Singapore added 0.7 percent and Wellington climbed 0.8 percent.
Shanghai, Hong Kong, Seoul, Kuala Lumpur and Taipei were closed for public holidays.
However, in early European trade London dipped 0.3 percent, while Frankfurt and Paris each fell 0.2 percent.
“With nothing in the economic numbers to say US rates should be moving up, and growing signs of losing momentum, expectations have largely diminished toward the Fed doing anything in September,” Cameron Bagrie, chief economist in Wellington at ANZ Bank New Zealand Ltd., said in a note to clients.
“The market is drifting back toward the view they might do nothing for quite a while.” With Bloomberg, AFP