The stock market sank Tuesday after President Rodrigo Duterte kept Metro Manila under a general quarantine community status, dampening prospects for a swift economic recovery.
The Philippine Stock Exchange Index fell 84.94 points, or 1.4 percent, to 5,799.24 on a value turnover of nearly P6.9 billion. Losers beat gainers, 99 to 85, with 57 issues unchanged.
President Duterte on Monday night approved a recommendation enforcing a month-long quarantine in the capital region instead of the fortnightly extensions imposed in previous months.
JG Summit Holdings Inc. of the Gokongwei Group shed 4.4 percent to P61.45, while Puregold Price Club Inc. of retail tycoon Lucio Co dropped 3.9 percent to P51.90.
International Container Terminal Services Inc., the biggest port operator and owned by tycoon Enrique Razon Jr., declined 3.2 percent to P101.60, while conglomerate Ayala Corp. also fell 3.2 percent to P710.
The rest of Asian markets fluctuated Tuesday following another healthy month for global equities, fueled by expectations of cheap borrowing for years to come, while traders were turning their attention to the release of US jobs data later in the week.
While the Nasdaq powered to yet another record as tech firms are fired up by people being forced to stay home by the virus, the Dow and S&P 500 dipped, though both enjoyed their best August in more than 30 years.
Signs of a new pick-up in infections around the world and a lack of any movement on a new US stimulus package for the world’s top economy were also keeping buying sentiment at bay.
“Following such a strong month and such a strong recovery since we saw the trough back in March, we do think we could see some turbulence over the next few months,” Tracie McMillion, at Wells Fargo Investment Institute, told Bloomberg Television.
“We’re entering a seasonally weaker period, we’ve got elections on the horizon, and also we’re entering the fall and there could be some coronavirus escalation that also could start to worry market participants.”
Hong Kong and Tokyo were flat, while Mumbai added 0.6 percent, a day after data showed the Indian economy shrank a historic 23.9 percent in April-June, which was worse than expected.
Shanghai climbed 0.4 percent following news that a private survey of Chinese manufacturing had shown a pick-up in activity. With AFP
Seoul, Taipei, Jakarta and Bangkok were well in positive territory but Sydney and Wellington were more than one percent lower, while Singapore also dropped.
The key event this week is the release Friday of closely watched US non-farm payrolls figures, which will provide the latest snapshot of an economy that has been struggling in recent weeks from the reimposition of some virus containment measures owing to fresh flare-ups across the country. Updates on the factory and services sectors are also due this week.
Still, the weakness has not given US lawmakers any urgency to push through a new rescue deal, with Republicans and Democrats still at loggerheads. With AFP