spot_img
28.1 C
Philippines
Friday, March 29, 2024

Stocks fall; Cebu Pacific, BPI advance

- Advertisement -

Stocks slipped in thin trading Monday as unease lingered over tightening monetary policy by the Fed and rising prices in China.

The Philippine Stock Exchange Index shed 29.73 points, or 0.4 percent, to 6,988.29 on a value turnover of P3.4 billion. Losers beat gainers, 102 to 75, with 55 issues unchanged.

Major property developer Ayala Land Inc. of the Ayala Group fell 1.9 percent to P34.30, while Semirara Mining and Power Corp. of the Consunji Group, the biggest coal miner, declined 1.8 percent to P30.90.

Cebu Air Inc. of the Gokongwei Group, the largest budget carrier, however, rose 2.6 percent to P48.70, while Bank of the Philippine Islands, the third-biggest lender in terms of assets, climbed 1.5 percent to P100.

The rest of Asian stocks posted losses on Monday.

- Advertisement -

The drop followed a negative lead from Wall Street. The S&P 500 and the Nasdaq retreated as the yield on the 10-year US Treasury note climbed above 2.7 percent—a] signal markets are preparing for more tightening as the Federal Reserve battles inflation.

In Tokyo, the Nikkei closed 0.6 percent lower, while Hong Kong and Shanghai lost more than three percent and two percent respectively.

Taipei and Seoul were also down, while Sydney and Jakarta posted slight gains.

“Stocks are soft at the Monday (Asian) open on increasing evidence the Federal Reserve will take a more committed approach to its monetary policy inflation-fighting stance,” said Stephen Innes at SPI Asset Management.

“However, markets have been surprisingly resilient as discussions under the surface debated whether this week’s US March CPI data will hint at the peak of the inflation cycle and help the Fed’s chance to better engineer a soft landing, however narrow that path may seem.”

The US central bank has recently taken a hawkish tone as it embarks on an aggressive tightening path, prompting traders to fret over the prospect of higher interest rates.

“Today, the mantra for many investors is ‘Don’t fight the Fed when it is fighting inflation’,” Ed Yardeni, president of Yardeni Research, wrote in a note.

In China, factory-gate inflation was higher than expected in March, official data showed, as Russia’s war on Ukraine pushes up oil prices while a domestic COVID-19 resurgence strains food supplies and consumer costs.

The producer price index—measuring the cost of goods at the factory gate—grew 8.3 percent on-year, National Bureau of Statistics (NBS) figures showed.

“It is China’s COVID situation that is making Asia nervous,” said Jeffrey Halley, senior market analyst with OANDA. “The weekend press was full of stories of locked down Shanghai residents unable to secure food supplies, with cases rising to 27,000 yesterday.”

“With China’s government doggedly sticking to its COVID-zero policy, fears are increasing that an extended lockdown in China, which may spread to other major industrial cities will darken an already cloudy outlook for China’s growth.” With AFP

- Advertisement -

LATEST NEWS

Popular Articles