The stock market slipped Wednesday as investors weighed ongoing worries about the economic impact of the coronavirus and fresh outbreaks in some countries against signs it is easing in other parts of the world and hopes for a vaccine.
The Philippine Stock Exchange Index fell 22.11 points, or 0.4 percent, to 5,931.33 on a value turnover of P4.9 billion. Gainers, however, beat losers, 101 to 89, with 51 issues unchanged.
Universal Robina Corp., the biggest snack food maker, declined 2.5 percent to P139, while conglomerate Ayala Corp. shed 2 percent to P717.50.
Manila Water Co. Inc., however, rose 6.7 percent to P14.10. The Philippine Competition Commission on Tuesday approved the acquisition of a controlling stake in Manila Water by Trident Water Holdings Company Inc., the holding unit of Prime Metroline Holdings Inc. Prime Metroline is controlled by tycoon Enrique Razon Jr.
Metro Pacific Investments Corp., which into toll roads, water and electricity distribution, hospitals and infrastructure, climbed 4.7 percent to P3.33.
Most markets in Asia, meanwhile, slipped.
Wall Street provided a third-successive record-breaking lead, with tech firms’ march ever higher unmoved by a sharp drop in confidence in the crucial US consumer sector, while easing China-US trade fears provided support.
Shanghai dropped more than one percent, while Sydney eased 0.7 percent and Hong Kong dipped 0.1 percent.
Mumbai and Tokyo were marginally lower, while Singapore and Jakarta were also in the red.
Seoul, Taipei, Wellington and Bangkok were slightly higher, though.
Michael Hewson of CMC Markets pointed out that US traders were also “no doubt being helped by optimism ahead of Federal Reserve chairman Jerome Powell’s speech later this week, which is likely to reinforce the US central bank’s commitment to do whatever it takes to support the US economy, at this very challenging time”.
The closely watched Conference Board index saw a sharp drop in July to a six-year low, with views on future expectations and the present both down after a summer spike in infections across the US Sun Belt, suggesting little chance of improvement any time soon.
“Disappointment over the lack of another fiscal package supporting incomes, still choppy news on the virus and last week’s jobless news were not that comforting, either,” said National Australia Bank’s Ray Attrill.
“This reading puts consumer confidence back to pandemic lows.”
And while there are signs the disease is leveling off in the US, other countries are fighting to subdue new flare-ups, with Spain calling in the army to try to help curb its spread and South Korea reclosing all schools and kindergartens in the greater Seoul region.
And observers warned the upcoming winter could see more infections as people are forced to stay indoors.
“The situation is still far better than it was in the spring with more asymptomatic cases and much broader testing,” said AxiCorp’s Stephen Innes.
“However, recent momentum and outbreaks around the world are worrying, as second and third-wave coronavirus outbreaks still pose the most significant threat to the economic recovery.” With AFP