The stock market declined for the sixth straight day Friday as the extended lockdown is taking its toll on consumer spending and small businesses.
The Philippine Stock Exchange Index slipped 24.07 points, or 0.4 percent, to 6,258.71 on a value turnover of P4.7 billion. Losers edged gainers, 106 to 104, with 35 issues unchanged.
Puregold Price Club Inc. of retail tycoon Lucio Co fell 2.7 percent to P34.05, while JG Summit Holdings Inc. of the Gokongwei Group dropped 2.6 percent to P51.10.
However, International Container Terminal Services Inc., the biggest port operator and owned by tycoon Enriquez Razon Jr., advanced 5.4 percent to P135.40, while technology and gaming firm DFFN Inc. jumped 20.9 percent to P4.98.
Copper and iron ore prices, meanwhile, hit record highs Friday as demand for the key commodities surges on the back of a powerful recovery in the global economy, though Asian equity markets struggled to maintain an early rally ahead of a keenly awaited US jobs report.
With major economies led by the United States and China reopening after last year’s shutdowns, industries are ramping up production, pushing the cost of materials ever higher as traders also worry about a lack of supply caused by the pandemic.
Asia floundered to maintain its early promise with markets paring morning gains or falling into the red. Tokyo, Sydney, Seoul, Singapore, Taipei, Mumbai, and Bangkok all rose but Hong Kong, Shanghai, Wellington, and Jakarta fell.
Copper, a major indicator of the state of the global economy owing to its use in a multitude of products, finally broke to an all-time high above $10,200 per ton Friday, and with the global recovery expected to continue for some time, analysts say the price can continue north.
“It’s hard to foresee copper prices turning around amid the current bullish atmosphere,” Ji Xianfei, at Guotai Junan Futures Co, said.
And Commerzbank AG analyst Daniel Briesemann added: “The long-term prospects for metals prices are ‘too good’ and point to higher prices in the next few years.
“The decarbonization trends in many countries—which include switching to electric vehicles and expanding wind and solar power—are likely to generate additional demand for metals.”
Iron ore also broke to new levels, hitting $205 a ton as commodities prices across the board advance, with lumber, tin, bacon, and sugar all sharply higher.
However, that has fanned fears about a spike in inflation around the world that many warn could force central banks to wind back their ultra-loose monetary policies that have helped fire a global markets rally for more than a year.
Top bankers-led by the Federal Reserve have repeatedly pledged to maintain their accommodative measures for the foreseeable future, though many believe its hand could be forced by a period of excessively high inflation.
Eyes are now on the release of US jobs figures later in the day, which will be the latest indicator of the state of the world’s top economy.
They come a day after a forecast-beating reading on unemployment benefits that showed claims fell to their lowest since the coronavirus struck last year, and two days on from news that 742,000 new jobs were created in the private sector in April. With AFP