The stock market fell slightly Wednesday on profit taking after some investors started to consolidate their portfolio.
The Philippine Stock Exchange Index slipped 11.44 points, or 0.2 percent, to 6,274.80 on a value turnover of P5 billion. Gainers, however, beat losers, 103 to 81, with 40 issues unchanged.
SM Prime Holdings Inc. of the Sy Group, the biggest mall operator, dropped 2.9 percent to P36.75, while International Container Terminal Services Inc. of tycoon Enrique Razon Jr., the largest port operator, declined 2.2 percent to P182.
Semirara Mining and Power Corp., the biggest coal producer, however, rose 3.7 percent to P40.70, while major property developer Ayala Land Inc. of the Ayala Group climbed 3.3 percent to P25.20.
The rest of Asian equities piled higher Wednesday following a surge on Wall Street, as investors grow hopeful in the ongoing earnings season, while sentiment was also boosted by news that Russian gas flows to Europe will not be cut off.
Markets also reacted positively to a report saying China will fine ride-hailing giant Didi $1 billion but bring an end to its year-long probe, reinforcing optimism that a long-running tech crackdown is nearing an end.
After a hefty drop Monday, all three main indexes on Wall Street posted solid gains Tuesday as companies’ earnings soothed concerns about the impact on their bottom lines from soaring inflation and rising interest rates.
Analysts said that with many investors having priced in a weak reporting season, above-forecast readings were giving a lift to stocks.
While several firms—such as Apple and Johnson & Johnson—have indicated they have concerns about the outlook, there is a feeling that the sell-off across markets could be reaching a bottom.
And some commentators have suggested the second half could see a healthy rally.
“Stocks have been beaten down,” said Kristina Hooper, a strategist at Invesco.
“That doesn’t mean we won’t see more downside for some stock markets around the world, especially given that earnings expectations are likely to be adjusted downward. But I believe we are far closer to the bottom than the top.”
A surge in tech giants helped the Nasdaq jump more than three percent while the Dow and S&P 500 climbed more than two percent.
And the positive vibes flowed through to Asia, where Hong Kong was among the best performers thanks to big advances in the city’s tech titans, including Alibaba and Tencent.
Traders there were given a much-needed lift by a Wall Street Journal report saying Beijing is expected to hit Didi Global with the billion dollar fine before bringing the curtain down on a long-running investigation.
The firm will then be able to restart its key apps and add customers again, while also being allowed to resume its stalled Hong Kong listing.
The report was music to the ears of investors who have been battered by a regulation clampdown on the tech industry and a range of other sectors including private education. The Hong Kong tech index rose more than two percent Tuesday.
Elsewhere, Tokyo, Shanghai, Sydney, Seoul, Singapore, Mumbai, Taipei, Bangkok, Jakarta and Wellington also rallied. With AFP