THE stock market on Wednesday managed to trim its losses at the close after renewed sell-offs — said to have been spurred by US rate concerns and the possible cancellation of an historic US-North Korea summit — threatened to overturn the previous day’s significant gains.
The bellwether Philippine Stock Exchange index (PSEi) fell by as much as 1.13 percent in morning trade before clawing back to end the day just 0.21 percent or 16.41 points down at 7,869.56.
The wider All Shares shed 0.32 percent or 15.34 points to finish at 4,754.80.
“After days of run-up, the market took a breather,” First Grade Finance, Inc. Managing Director Astro del Castillo said.
The PSEi had posted a 1.73-percent jumpt to return to the 7,800 level on Tuesday, with first quarter growth results and a policy rate hike said to have continued bolstering investor sentiment following an election break.
Del Castillo said Wednesday’s fall was spurred by a rise in US bond yields and North Korea’s threat to cancel a planned meeting next month between leader Kim Jong Un and US President Donald Trump.
US bond yields hit a seven-year peak following reports of solid retail sales, which also raised the prospect of higher inflation and the likelihood that the US Federal Reserve could raise interest rates three more times this year.
The prospect of debt costing more to service hit equities, sending all three main indexes on Wall Street lower.
The losses spread to Asia with Hong Kong falling 0.2 percent and Shanghai 0.7 percent off.
Tokyo ended 0.4 percent down after data showed Japan’s economy contracted in January-March for the first time in two years.
Singapore shed 0.3 percent and Wellington sank more than one percent.
Bangkok and Jakarta were also well down. However, Sydney rose 0.2 percent, Seoul edged up 0.1 percent and Taipei put on 0.2 percent.
Back in Manila, only the mining and oil and property sectors posted gains, rising by 0.62 percent and 0.86 percent, respectively.
Volume turnover was thin with only 661 million issues valued P6.37 billion changing hands.
Losers led winners, 106 to 84, while 53 issues were unchanged.
with a report from AFP