Stocks slip; DMCI, Semirara fall

The stock market declined Wednesday, weighed down by losses in Asia on renewed concerns about China-US trade talks.

The Philippine Stock Exchange Index slipped 14.08 points, or 0.2 percent, to 7,898.06 on a value turnover of P4.1 billion. Losers beat gainers, 106 to 72, with 52 issues unchanged.

DMCI Holdings Inc. of the Consunji Group slumped 8.4 percent to P6.98, while unit Semirara and Mining Power Corp. tumbled 6.6 percent to P21.85.

The Department of Energy ordered Semirara to suspend mining activities covered by one coal operating contract following a mudflow incident in Semirara Island, Antique province. The directive followed an earlier order imposing a one-month selective coal trading suspension and fines against Semirara for allegedly violating coal trading rules. 

Megaworld Corp., the biggest lessor of office spaces, fell 2.3 percent to P4.65, but LT Group Inc. of tycoon Lucio Tan advanced 5.2 percent to P13.06

The rest of Asian markets sank Wednesday on renewed concerns about China-US trade talks after Washington lawmakers passed a bill supporting Hong Kong civil rights, a move likely to spark anger in Beijing.

Hong Kong was down 0.8 percent and Shanghai closed 0.8 percent off, while Tokyo finished 0.6 percent lower.

Singapore shed 0.2 percent, Seoul sank 1.3 percent and Taipei lost 0.2 percent. Bangkok and Jakarta also fell.

Sydney dropped more than one percent as financials were hammered by news that banking giant Westpac had been accused of “serious and systemic” breaches of money-laundering laws involving more than US$7 billion. If found guilty it faces a huge fine.

The vote by the US senate came as investors were already growing nervous about the lack of solid news on negotiations for a mini tariffs pact to help resolve a debilitating and long-running standoff between the economic superpowers.

China was already angered and expressed “strong indignation” last month when the US House of Representatives passed a similar measure.

The bill, which must be signed off by Donald Trump, supports “human rights and democracy” in Hong Kong and threatens to revoke its special economic status as lawmakers grow concerned about an increasingly tough crackdown on the months-long protests.

It would require the president to annually review the favorable trade status Washington grants to the city and allows for sanctions against Hong Kong and Chinese officials who commit human rights abuses including “extrajudicial rendition.”

While observers broadly expect the two sides to eventually hammer out some sort of agreement as part of a wider pact, there have been a number of bumps in the road, causing anxiety on equity markets.  

And Vice President Mike Pence warned Tuesday that the Hong Kong situation could complicate any deal.

However, AxiTrader’s Stephen Innes said Trump “has been conspicuous by his silence” when it comes to Hong Kong chaotic.

“Perhaps Trump sees a trade deal with Beijing as a more significant priority as he makes his case for re-election and doesn’t want the Hong Kong bill to act as a stumbling block,” he said. With AFP