Stocks fell Tuesday to end a five-day rally, tracking the movement of Asian markets following poor performances by tech firms on Wall Street and as investors anticipated a Bank of Japan policy decision.
The Philippine Stock Exchange index, the 30-company benchmark, shed 101 points, or 1.3 percent, to close at 7,672.00. The bellwether was also down 10.4 percent since the start of the year.
The heavier index, representing all shares, tumbled 41 points, or 0.9 percent, to settle at 4,604.12, on a value turnover of P7.1 billion. Losers outnumbered gainers, 130 to 63, while 52 issues were unchanged.
Five of the 20 most active stocks ended in the green, led by restaurant chain operator Jollibee Foods Corp. which rose 1.5 percent to P270 and Globe Telecom Inc which gained 1.2 percent to P1,835.
Most Asian markets traded lower Tuesday, following overnight losses on Wall Street. US tech equities suffered a significant tumble on Monday, pushing the tech-rich Nasdaq Composite Index in New York down 1.4 percent—the third straight day it had lost at least one percent.
Silicon Valley shares have been in retreat since Facebook last week signalled slower growth as it spends more on data security in response to criticism over its privacy policies.
The slump affecting the sector’s biggest five stocks—Facebook, Apple, Amazon, Netflix and Google—has injected trepidation into world markets ahead of an Apple earnings announcement later Tuesday, analysts said.
“The markets heavyweight champions are having a rough day, but US markets pruned much of their losses as bank stocks and surging oil prices boosted producers,” said Stephen Innes, head of Asia-Pacific trading at Oanda.
“All eyes will remain on Nasdaq as the Wall Street wall of worry continues to build around the tech sector,” he said.
In early Asian trade on Tuesday, Japan’s benchmark Nikkei 225 Index was down 0.3 percent, while the yen was slightly higher ahead of an announcement by the Bank of Japan (BoJ) after a two-day policy meeting.
Hong Kong slipped 0.6 percent and China’s benchmark Shanghai Composite Index was down 0.3 percent, as investors also eyed announcements by other major central banks this week.
Singapore lost 0.3 percent, while Sydney edged up 0.1 percent and Seoul was flat.
There has been widespread speculation about whether Japan’s central bank may be looking to alter its ultra-loose monetary policy, but analysts said rate changes were not widely expected.
“I think the BoJ will be a little bit less of an event than is being forecast and despite all the rumor and innuendo, I suspect Kuroda and co. will sit on their hands,” Evan Lucas, chief market strategist at InvestSmart, told Bloomberg Television, referring to the bank’s governor Haruhiko Kuroda.
“The catch around that and probably the contrarian trade is that whatever they say, I think is going to see a reaction anyway,” Lucas said.
The US Federal Reserve is set to make its own announcement on Wednesday, and the Bank of England on Thursday. With AFP