The stock market slipped Friday on weak remittances from migrant Filipino workers in October and indications from the US Fed of more interest rate increases.
The Philippine Stock Exchange Index lost 4.60 points, or 0.07 percent, to 6,850.71 on a value turnover of P9.6 billion. Losers edged gainers, 94 to 83, with 43 issues unchanged.
Money sent home by Filipinos working overseas fell 3 percent in October to $2.1 billion from $2.16 billion a year ago, as the currencies of most host countries fell against the US dollar. Data from Bangko Sentral ng Pilipinas showed the October remittances were the lowest in three months.
Metro Pacific Investments Corp., which has interests in water and electricity distribution, toll roads and hospitals, decreased 4.6 percent to P6.30, while GT Capital Holdings Inc. of tycoon George Ty dropped 1.6 percent to P1,210.
Ayala Land Inc. lost 0.6 percent to P31.55, while sister unit Globe Telecom Inc. fell 0.2 percent to P1,426. Rival PLDT Inc., the biggest telecommunications firm, gained 2.4 percent to P1,350.
The US dollar, meanwhile, held its gains against most other currencies in Asia on Friday following the Federal Reserve’s interest rate call, while the unit’s surge against the yen provided fresh impetus to Japanese stocks.
The US central bank’s hike Wednesday and its indication of three more next year—instead of the expected two—has lit a fire under the greenback, sending it to 14-year highs against the euro with analysts saying it could soon hit parity.
The yen’s retreat—it has lost almost a fifth of its value since Trump’s election—has sent Tokyo’s Nikkei index to one-year highs and on Friday chalked up a ninth successive gain, adding 0.7 percent. The index has risen six percent since December 5.
Other regional markets were mostly up after suffering hefty losses on Thursday. Shanghai ended 0.2 percent higher and Seoul added 0.3 percent. Sydney eased 0.1 percent and Hong Kong was flat.
However, among emerging markets there were losses in, Taipei, Jakarta and Kuala Lumpur.
The dollar has been on a roll since Donald Trump was elected president on November 8, promising huge spending on infrastructure, tax cuts and deregulation. That has also sent US equity markets to record highs this month.
However, the prospect of higher borrowing costs has rattled trading floors in Asia, with emerging market stocks and currencies suffering as dealers pull out looking for better returns in the US, where 10-year Treasury yields are at two-year highs.
In afternoon trade the euro was at $1.0436, having fallen to $1.0367 in New York, its lowest level since early 2003 and heading towards the $1.00 mark for the first time since 2002.
“While the parity party invitations remain on hold, the writing is all but on the wall for the euro to succumb to the surging dollar,” Stephen Innes, senior trader at OANDA, said in a commentary.
He added the first quarter of 2017 was shaping up to be a “political hotbed” with the fallout from Brexit continuing and a “wave of highly contentious elections.” With AFP