The stock market slipped Thursday on profit taking after climbing to a fresh two-year high the other day.
The Philippine Stock Exchange Index lost 13.89 points, or 0.2 percent, at 7,438.93 on a value turnover of P6.8 billion. Gainers, however, beat losers, 107 to 77, with 56 issues unchanged.
SM Prime Holdings Inc. of the Sy Group fell 1.3 percent to P38, while parent SM Investments Corp. declined 1.1 percent to P927.
Casino operator Bloomberry Resorts Corp., owned by port tycoon Enrique Razon Jr., however, rose 5.2 percent to P6.89, while Fiber broadband provider Converge ICT Solutions Inc. advanced 3.4 percent to P28.50.
The rest of Asian markets mostly rose Thursday as investors assess the situation in Ukraine after the West said Russia had not started withdrawing troops from its border, while minutes from the Federal Reserve’s January meeting eased concerns it was set to hike rates sharply.
Meanwhile, oil prices slipped on further signs of a breakthrough in Iran nuclear talks.
Global equities were sent plunging and crude surged after a top US official said Russia could invade Ukraine imminently, but Moscow appeared to soothe those fears Tuesday by saying it had started withdrawing some soldiers.
The announcement and an apparently more conciliatory tone from the Kremlin provided a much-needed lift to markets.
However, while the general mood on trading floors was upbeat that tensions had eased, Washington dismissed the Russian claims and accused it of sending more soldiers, adding there were “indications they could launch a false pretext at any moment to justify an invasion.”
That came after NATO joined Ukraine in saying there was no sign of any retreat, while chief Jens Stoltenberg said tensions in the east with Russia were “the new normal in Europe.”
Asia enjoyed a broadly positive day Thursday, though confidence was knocked when reports said Russian separatists in Ukraine said the country’s forces had fired at them—highlighting the tense climate in the area.
Hong Kong, Shanghai, Sydney, Seoul, Taipei, Wellington, Mumbai, Bangkok, Singapore were in positive territory, though there were losses in Tokyo and Jakarta.
The geopolitical uncertainty jolted US markets Wednesday, though they enjoyed a late rally from intraday lows after the Fed minutes provided no surprises.
The release had been keenly awaited as the bank tries to walk a fine line of reining in four-decade-high inflation while not knocking the healthy economic recovery off track.
Expectations are for officials to hike interest rates in March and then several times again before the end of the year, but there has been much debate about how big its initial move will be and how many more there will be.
It has also said it will start to offload the bonds it has on its balance sheet, which are helping to keep borrowing costs down.
Some have warned of a 50-basis-point hike at first—twice what it usually announces—and as many as six or seven more before January.
“The Fed’s Minutes showed interest rate hikes are coming and that they are readying for a significant reduction in the size of the balance sheet,” said OANDA’s Edward Moya. With AFP