THE stock market fell to a two-week low on Wednesday as investors took profits and ignored positive developments in US-China trade talks that had boosted regional counterparts.
The benchmark Philippine Stock Exchange index (PSEi) touched the 7,800 level during intra-day trading but recovered somewhat to limit the day’s losses to 1.12 percent or 89.68 points for a 7,920.24 finish.
The broader All Shares dropped 0.96 percent or 46.42 points to finish at 4,811.99.
“We attribute the PSEi’s lagging performance to continued profit-taking after a spectacular start of the year,” AAA Southeast Equities Inc. President Matthew Cabangon said.
“Upcoming corporate earnings have also led some [investors] to reduce their exposure to local equities,” he added.
Philstocks Financial Inc. research associate Piper Chaucer Tan shared Cabangon’s view and said market players were still staying on the sidelines ahead of the outcome of the latest round of US-China trade talks.
Regional markets surged after US President Donald said on Tuesday that he could extend the deadline for a trade deal past March 1. A report later on Wednesday said Chinese President Xi Jingping would meet visiting US officials in Beijing, suggesting a redoubled effort to make progress on a deal.
Wall Street rallied overnight on Trump’s remarks, with the Dow Jones up 1.49 percent, the S&P 500 by 1.29 percent and the Nasdaq by 1.46 percent.
Regional markets followed suit with Tokyo up 1.34 percent to a two-month high. Shanghai surged 1.84 percent and Hong Kong also rose 1.12 percent. Singapore added 1.23 percent, Seoul 0.50 percent, Jakarta inched up 0.18 percent, and Bangkok gained 0.63 percent.
European stocks also climbed at the open, with London up 0.3 percent, Paris 0.3 percent and Frankfurt 0.4 percent.
In Manila, most sectors finished in the red except for mining and oil, which gained 0.49 percent.
Volume turnover stood at 4.6 billion shares valued at P7.27 billion.
Decliners beat advancers, 134 to 75, while 50 issues remained unchanged.
WITH A REPORT FROM AFP