Philippine Market Recap July 17, 2018

in #news6 years ago

Market Recap

Philippine share prices were higher on sluggish trades, weighed by a sharp decline in crude oil prices as Libyan ports reopened, and as mounting tensions over U.S. tariffs overshadowed data suggesting global growth was still on track.

The benchmark Philippine Stock Exchange Index (PSEi) added 12.24 points or 0.17% to close at 7,381.68. Meanwhile, the broader All Shares index inched 2.78 points or 0.06% to 4,465.38 at the closing bell.

Crude has been rising steadily so some kind of adjustment was due. From this context the impact on the broader economy, inflation and therefore the stock markets should be limited.

Crude prices slumped more than 4% on Monday, with Brent futures reaching a three-month low of $71.52 a barrel, as Libyan ports reopened and traders eyed potential supply increases by Russia and other producers.

Concerns over China's Q2 economic growth also weighed on oil prices. The country's economy expanded at a slower pace as Beijing's efforts to contain debt hurt activity, while June factory output growth weakened to a two-year low.

On Monday, the Trump administration brought cases against China, the European Union, Canada, Mexico and Turkey at the World Trade Organization for retaliating against American tariffs on imported steel and aluminum. The U.S. has imposed tariffs of 25% on steel and 10% on aluminum on the grounds that the imported metals pose a threat to its national security. In response, the countries have counter punched with taxes on more than $24-bil worth of U.S. exports. U.S. Trade Representative Robert Lighthizer said their retaliation violates WTO rules. If the WTO agrees, it would assess the damage and calculate the tariffs that the United States would be entitled to impose in response — retaliation for the retaliation. But WTO proceedings can last years. Earlier in the day, China said it had filed a WTO challenge to Trump's proposal for a tariff hike on $200-bil of Chinese goods.

The recovery for equity markets takes a breather with the earnings optimism coming under question and a reminder of the concerns over trade tensions.

Volume remains light with more than 456.020-mil shares, valued at P3.585-bil, changing hands. Advancers outweighed decliners, 91 to 90, with 55 issues unchanged.

Gainers: GLO (+2.83%), MPI (+2.03%), ICT (+1.89%), URC (+1.63%), JFC (+1.53%)
Laggards: AC (-1.90%), LTG (-1.45%), RLC (-1.31%), BPI (-1.14%), MEG (-1.10%)

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