The stock market fell Thursday on mild profit-taking after a two-day Christmas break, but water-related issues continued their rally as some investors took advantage of their steep losses in previous sessions.
The Philippine Stock Exchange Index slipped 30.32 points, or 0.4 percent, to 7,842.28 on a thin value turnover of P3.6 billion. Gainers, however, beat losers, 105 to 81, with 50 issues unchanged.
JG Summit Holdings Inc. of the Gokongwei Group declined 3.3 percent to P79, while SM Investments Corp. of the Sy Group, dropped 2 percent to P1,056.
Manila Water Co. Inc. jumped 17.8 percent to P10.10, while Metro Pacific Investments Corp., which is into water and electricity distribution, toll roads, hospitals and infrastructure, advanced 4.7 percent to P3.58.
The rest of Asian equities inched up on Thursday in subdued trading, holding the gains recently spurred by the US-China trade thaw.
Following the Christmas lull across world markets, eyes are now on US unemployment data due later in the day, and Japanese industrial and retail data scheduled for release on Friday.
Tokyo’s benchmark Nikkei index closed 0.6 percent higher after a flat start. Shanghai was up 0.4 percent and Seoul also climbed 0.4 percent.
“Investor sentiment towards the global economy is improving,” said Rakuten Securities chief strategist Masayuki Kubota.
Hong Kong, Sydney and Wellington were closed for a public holiday.
“With the… tech sector giants leading the way, investors are showing no fear as the market remains underpinned by the thawing in the US-China trade squabble and easy central bank policy,” Stephen Innes, chief Asia market strategist at AxiTrader, said in a report.
Volumes are typically light during the holiday season, and the muted activity in Asia followed sleepy Christmas Eve sessions in many world markets.
“No news being good news, Asia should maintain… gains ahead of a US session likely to be positive,” Jeffrey Halley, senior market analyst for Asia-Pacific at OANDA, wrote in a note.
In oil markets, the main contracts were up as the commodity remained strong thanks to trade optimism as well as the OPEC+ output reduction agreement.
Brent Crude and West Texas Intermediate were both up 0.4 percent.
“Oil prices continue to show year-end strength supported by a combination of definitive progress on the US-China trade deal, the… OPEC/OPEC+ agreement, and slowing shale activity,” wrote AxiTrader’s Innes.
“All of which is pointing to a stronger performance for oil prices in Q1 than anyone had thought only two months ago.”
World markets were spooked by the long-running, tit-for-tat trade war between the United States and China, with analysts warning that the bruising rift between the world’s two biggest economies could harm global economic growth.
Washington and Beijing have agreed to an initial trade deal, which they are expected to finalize in January, and the improvement in ties has boosted markets with investors hoping for a smoother ride into the new year.