Stock market drops; ICTSI, Dito lead losers

Stocks fell Wednesday on profit taking, while the rest of Asian markets rallied as investors cheered news that the White House had put forward a fresh stimulus proposal of more than $900 billion, lifting hopes US lawmakers could pass a deal before Christmas.

The Philippine Stock Exchange Index dropped 101.01 points, or 1.4 percent, to 7,102.66 on a value turnover of P9.9 billion. Gainers, however, beat losers, 132 to 117, with 27 issues unchanged.

International Container Terminal Services Inc., the biggest port operator and owned by tycoon Enrique Razon Jr., declined 5.2 percent to P119.40, while Dito CME Holdings Corp., the third major telecommunications firm, retreated 4.7 percent to P7.25.

Conglomerate Ayala Corp. fell 4.6 percent to P820, but Nickel Asia Corp., the largest nickel producer, rose 5 percent to P5.

Meanwhile, the prospect of a rescue package for the world’s top economy helped revive equities, which have drifted for most of the month after November’s surge, while the rollout of vaccines in Britain and imminent authorization in the US has added to the optimism.

However, spiking virus cases around the world and the imposition of tough containment measures continues to cast a long, dark shadow over trading floors.

Tokyo and Wellington rose more than one percent, Seoul added two percent and Hong Kong put on 0.8 percent, while Sydney, Mumbai, Singapore, Taipei and Bangkok were also higher.

But Shanghai fell more than one percent as investors fret over data showing consumer prices fell last month for the first time in 11 years, fueling worries about the crucial retail sector.

Regional investors were given a strong lead from Wall Street, where the Nasdaq and S&P 500 notched up fresh records.

“With the markets starting to exhibit some year-end fatigue, any stimulus holiday stocking-stuffer will come at a most welcome time and ensure that well-subscribed equity markets will cross the year-end finishing line on a positive note,” said Axi strategist Stephen Innes.

Eyes are also on Brussels, where UK Prime Minister Boris Johnson is due to hold crunch talks with EU chief Ursula von der Leyen on a post-Brexit trade deal.

Equities have struggled this week as focus has been on the disease but US Treasury Secretary Steven Mnuchin provided a much-needed shot in the arm Tuesday when he said he had presented Democrat House Speaker Nancy Pelosi with a new economic rescue package.

The $916-billion plan is bigger than the $908-billion proposal put forward last week by a bipartisan group of lawmakers, and Mnuchin said it includes money for state and local governments and “robust liability protections for businesses, schools and universities.”

Those elements have been key sticking points in negotiations between Democrats and Republicans. Crucially, the bill has been viewed by Donald Trump and Senate Majority Leader Mitch McConnell.

“My view, and I think it’s a view shared by literally everybody on both sides of the aisle, is that we can’t leave without doing a COVID bill,” McConnell said before the proposal was made public. “The country needs it.” With AFP