Share prices fell Friday, tracking Wall Street losses as investors continue to show concern over persistently high global inflation and the likelihood of further interest rate hikes.
The Philippine Stock Exchange Index slipped 26.9 points, or 0.4 percent, to 6,548.77 on a value turnover of P15.1 billion. Losers beat gainers, 112 to 68, with 46 issues unchanged.
San Miguel Food and Beverage Inc., a unit of conglomerate San Miguel Corp., sank 8.9 percent to P42.70, while noodles maker Monde Nissin Corp.dropped 4.4 percent to P13.86.
Emperador Inc. of business tycoon Andrew Tan, the biggest liquor maker, declined 3.2 percent to P19.90, but PLDT Inc. of Indonesia’s Salim Group, the largest telecommunications company, advanced 5.9 percent to P1,750.
Meanwhile, major markets in Tokyo, Shanghai, Hong Kong, Seoul, Taipei, Mumbai and Sydney were lower, in line with overall market sentiment ahead of a decision from the US Federal Reserve next week.
Asian stocks were on course to extend their weekly declines into a fifth straight week, following on from continuing weakness in US and European equities.
The Nikkei in Tokyo lost 1.1 percent at the close, as investors “found it difficult to aggressively take positions” ahead of a long weekend and the Fed’s upcoming decision, Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Research Institute, told AFP.
China’s factory output and retail sales beat expectations in August, new data released on Friday showed, despite the economy being hammered by COVID-related curbs, heatwaves and a deepening property market slump.
The data did little to buoy China’s main stock market, however, with Shanghai closing down 2.3 percent. Hong Kong closed down 0.9 percent.
Wall Street’s three main indices rallied briefly on Thursday, but the gains fizzled. Traders took little comfort from US President Joe Biden’s announcement of a tentative deal to avert a potentially damaging railroad strike.
All eyes remain on the Fed, which has already instituted two consecutive 75-basis-point hikes and is widely expected to carry out a third.
On Thursday, US retail sales data showed a surprising increase in August, but the report also downgraded sales in the month prior, tempering the good news.
Weekly US jobless claims retreated once again, and industrial production fell modestly in August.
The new data was not enough, however, to offset the widespread bearish sentiment following higher-than-expected US inflation data released earlier in the week, which showed yearly inflation slowing by less than forecast and monthly inflation rising.
Analysts expect the Fed to continue raising interest rates, in a bid to cool an overheating economy and combat inflation, which remains near decades-highs in major economies.
“Because of the dramatic rise in Treasury yields, the Fed is going to have to keep raising rates beyond (next week),” said prominent investor Louis Navellier in his podcast on Thursday.
“I think they might now raise rates in November just before the (US) midterm elections and possibly December.” With AFP