The main composite index of the Philippine Stock Exchange (PSE) opened the week in the red on profit-taking.
The PSE index shed 21.72 points, or 0.31 percent, to close at 6,891.49 Monday, while the broader all-shares index lost 7.63 points, or 0.21 percent, to settle at 3,600.49.
Philstocks Financial Inc. research analyst Mikhail Plopenio said the market fell below the 6,900 level as investors secured gains after last week’s market rally.
Plopenio said investors were also waiting for fresh catalysts to break the 7,000 psychological level.
“The local bourse joined most regional peers in the red territory as profit-taking prevailed as well,” Plopenio said.
Net market value was weak at P3.8 billion, even as foreign investors were net buyers by P39.51 million.
Asian markets were also mostly lower Monday, although Tokyo’s key Nikkei index closed at a fresh all-time high after two of the three main US indices also hit records. Investors are turning to profit-taking as last week’s mega market rally — fueled by stellar results from US technology titan Nvidia — loses steam, analysts say.
On Wall Street Friday, the Dow and the S&P ended higher than ever, but the tech-heavy Nasdaq index slipped following a three-percent surge a day earlier.
The “Nvidia advance moderated while other big tech share prices eased following a decent AI-driven run of late”, said Rodrigo Catril, senior FX strategist at National Australia Bank.
Tokyo’s Nikkei index closed 0.3 percent higher, pushing further past the December 1989 record it smashed on Friday.
But Chinese shares faltered, with Hong Kong finishing down 0.5 percent and Shanghai dropping 0.9 percent.
The losses came despite Beijing saying it wanted to boost sales of cars, appliances and other consumer products in “piecemeal incentives to stimulate the economy”, Catril said.
In China, “the property market’s woes have worsened, and manufacturers continue to sit on the sidelines”, while investors have pulled out of equity markets, Harry Murphy Cruise from Moody’s Analytics told AFP.
Government interventions have stabilized the market, with Chinese stocks rebounding from early February lows.
But underlying weakness means “investors are crying out for larger economic supports to be rolled out”, Cruise said.
Market players are now watching to see if extra spending and an ambitious growth target will be announced in March to help China’s economy gain momentum through the year, he said.
Traders are also awaiting corporate earnings reports this week from Chinese firms including internet giant Baidu and video game publisher NetEase.
Elsewhere in Asia, Singapore dropped 0.5 percent and Seoul fell 0.8 percent. Bangkok, Jakarta and Wellington were lower, but Sydney and Taipei ended with gains.
London stocks fluctuated in early trade, and Paris dipped 0.2 percent.
Oil prices were down, extending losses on Friday when G7 countries pledged new sanctions on Russia two years after its invasion of Ukraine began.
“Lack of demand (for crude oil) remains a concern while new US and EU Russia sanctions added to the uncertainty,” Catril said.
This week brings a raft of major indicators including January CPI for Australia and Japan.
And on so-called “Super Friday”, key inflation and manufacturing data will be released by the United States and China.
In particular, the US Personal Consumption Expenditure (PCE) price index will be closely watched because it may affect the Federal Reserve’s interest rate decisions.
“All eyes are on this week’s PCE release,” Cruise said.
“For Asian markets, a higher print — combined with the Fed’s fear of easing too early — could see rate cuts delayed… putting downward pressure on the region’s currencies.” With AFP