Asia stocks plunge on coronavirus fears, oil prices

TOKYO - Stock markets plunged around Asia on Monday, as panic selling set in with traders fretting over the economic impact of the new coronavirus and digesting a free-fall in the oil price.

By mid-morning, the benchmark Nikkei 225 index had dropped 5.10 percent or 1,058.06 points to 19,691.69, while the broader Topix index was off 5.01 percent or 73.69 points to 1,397.77.

Other markets in the region were also suffering with Hong Kong stocks down 3.8 percent at the open, Australia off more than 5 percent and equities in New Zealand and South Korea both down by just under 3 percent. 

In China, the benchmark Shanghai Composite Index dived 1.56 percent while the benchmark Philippine stock exchange index opened down nearly 4 percent. 

Driving the declines was a ferocious sell-off in the oil markets sparked by top exporter Saudi Arabia slashing prices -- in some cases to unprecedented levels -- after a bust-up with Russia over oil production.

The two main oil contracts were both down about 20 percent in morning Asian trade, with West Texas Intermediate sliding to around $32 a barrel and Brent crude to $36 a barrel.

The foreign exchange markets were also extremely volatile, with traders snapping up the yen -- seen as a hedge against global instability -- and selling off the dollar amid uncertainty over coronavirus in the United States.

Marito Ueda, senior trader at FX Prime, told AFP: "Fears over the virus's impact on the global economy and a plummet in US yields had investors seeking the safe-haven yen."

"It is essentially flight from the dollar," he added.

THICK WITH FEAR

A stronger yen tends to push down Japanese stocks, and exporters from the world's third-top economy were especially hard-hit, with Nissan and Sony down more than five percent and Toyota down 3.6 percent.

Banks also plunged, with Sumitomo Mitsui Financial trading down nearly four percent and Mitsubishi UFJ Financial off by almost five percent.

Stephen Innes, chief market strategist at AxiCo, said the markets were suffering from a perfect storm of factors.

"The yen surged... at the market open this week as investors dove into safe havens on accelerating COVID-19 cases in Europe, and as Saudi Arabia triggers a price war for oil, adding another level of unwanted panic to a market already thick with fear," he said. 

The dollar fetched 104.15 yen in early Tokyo time, after dipping to around 103.83 yen in Sydney time, the lowest level since November 2016. That compares with 105.40 yen in New York late Friday.

Markets were not helped by data showing that the Japanese economy had declined more than initially thought -- even before the outbreak of the coronavirus.

The country's gross domestic product during the October-December quarter was revised down to a contraction of 1.8 percent, compared to an earlier estimate of 1.6 percent.

"Unfortunately, any recovery in Q1 has been nipped in the bud by the global spread of the coronavirus," said Tom Learnmouth, Japan economist at Capital Economics.

Agence France-Presse

Property stocks boost PSEi

Philippine shares start the week on a strong note, outperforming most of their peers in the region.

On the corporate front, Vega Telecom prices the tender offer for Liberty Telecoms minority shareholders. - Business Nightly, ANC, August 22, 2016

source: www.abs-cbnnews.com

Earnings reports to set stock trading pace, analyst says

MANILA – Investors will look to corporate earnings for guidance, as the market pushes back to the 8,000-point level, an analyst said Tuesday.

The Philippine Stock Exchange Index (PSEi) opened 0.24 percent higher to 8,012.76 from Monday’s close of 7,993.58.

“If earnings are in line or better than expected, there will be a catalyst for the market to go higher,” Norman del Carmen, head of investments at Chinabank, told ANC’s “Market Edge with Cathy Yang.”

source: www.abs-cbnnews.com

Global shift to equities from bonds powers market rally

MANILA – Investors shifting to equities from bonds are fueling the rally in the local stock market, an analyst said Wednesday.

The Philippine Stock Exchange Index opened at 8,034.76 points from Tuesday’s close of 8,036. It is expected to test 8,100 points, said BPI Trade CEO Mike Oyson.

“It’s about the global liquidity,” Oyson told ANC’s “Market Edge with Cathy Yang.”

With bond yields falling, “stocks now are what you call the yield instruments,” he said.

The recent strength of Southeast Asian markets show the region has become a “basket” for funds flowing out of developed markets, he said.

source: www.abs-cbnnews.com

Stock picks in sluggish market: banking, consumer

Shares opened lower on Monday, tracking seven straight days of losses, as concerns over presidential elections next week kept investors on the sidelines.

The Philippine Stock Exchange Index was down 129.76 points or 1.81 percent to 7,029.53 in early trade.

"Investors should just stay away for the meantime until the election is done and we see a better picture of how the current president will continue or sustain the current economic growth," AB Capital Securities analyst Alex Tiu told ANC's "Market Edge with Cathy Yang."

Tough-talking Davao City Mayor Rodrigo Duterte leads closes rival Sen. Grace Poe by 11 points one week before the elections. He spoke before the country's business elite last week but did not specify how he would sustain robust growth.

Tiu recommend banking stocks BDO Unibank, Metrobank, Security Bank and East West Bank, which have been trading near record lows.

He also recommended consumer stocks that were benefiting from election-driven demand: Puregold, Robinsons Retail, SM Prime Holdings and Cebu Pacific.

source: www.abs-cbnnews.com

Corporate earnings reports to direct stock trading: analyst

Investors will look to corporate earnings for trading cues with possible profit-taking as they stay largely on the sidelines ahead of an impending leadership change in June, an analyst said Wednesday.

The Philippine Stock Exchange Index opened 0.27 percent lower to 7,192.07.

"There should be some sideways trading. The index will move within a very specific range," BPI deputy head of research Jomar Lacson told ANC’s "Market Edge with Cathy Yang."

"There will be some disappointments along the way, which may weigh the index down. I don’t think this is too volatile but definitely we will be trading in a specific range," he said.

Lacson said there could be "some selling" due to profit taking, but not necessarily due to concerns over who would win in the May 9 presidential elections.

"If you’re talking about liquidity alone, there is no immediate factor that would push foreign outflows to rise beyond the current levels we are experiencing," he said.

Tough-talking Davao City Mayor Rodrigo Duterte is the frontrunner to replace President Benigno Aquino, according to opinion polls.

An April 12-17 survey by ABS-CBN and Pulse Asia Inc. showed Duterte widened his lead over erstwhile frontrunner Poe by 12 points.

source: www.abs-cbnnews.com

PSE hit by 40-min trading halt as tech glitch hits system

Trading has been halted at the Philippine Stock Exchange (PSE) due to a technical problem Friday.

The PSE has informed traders to standby for further announcements, while loud complaints of orders being rejected could be heard from the trading floor at around 10:30 AM.

The Philippine Stock Exchange Index (PSEI) was at 7,198.46, down 34 points or 0.48% before trading was halted.

The PSE flashed a message on the main board asking traders to re-log into their PSEtradex workstations and the Market would resume at 10:58 AM. Ticker appears to be frozen.

Trade halted at PSE pic.twitter.com/8uZ30pN64a

— Warren de Guzman (@wddeguzman) April 8, 2016

 Traders say the market has not resumed. The PSEI however did move to 7,200.83, down 32 points or 0.44%.

PSE President Hans Sicat said the technical glitch Friday that halted trading for 41 minutes was due to a network related issue. PSE is currently contacting their third party service providers for further information. He stressed this is very different from the August trading halt that lasted 5 hours.

Sicat declined to blame it on slow internet, saying PSE has to further investigate.

Last year, trading was halted three times in August. On August 25, trade was halted for 5 hours, the longest trading halt ever for the PSE related to a technical glitch.

The halts happened after the current trading system, PSETradeXTS was adopted on June 22, 2015. That system was developed by NASDAQ but the PSE stressed the halts had nothing to do with the new system.

Trading was also halted in May 2014 when an older trading system was in place.

The PSE has a circuit breaker, or a threshold that would automatically suspend trade if volatility becomes excessive. The threshold for that is a change of 10%.

source: www.abs-cbnnews.com

PH shares too expensive - Credit Suisse

MANILA - Credit Suisse on Wednesday said Philippine shares are still too expensive.

Right now, with the Philippine Stock Exchange index (PSEi) at 7,000, Philippine shares are trading at an average price to earnings ratio of 18 to 19 times, meaning investors are paying roughly 18 times what the company earns per share.

That is one of the most expensive in the region.

Credit Suisse said many investors are waiting for the price-earnings (PE) ratio to fall to 15 times and below.

"You can achieve that drop two ways, either through a price correction or through improved corporate earnings. The one theme over the next six months for the Philippines, I think, and this is where you are going to get positive surprises, is in corporate earnings, whether it be through consumer companies, because I think domestic consumption will remain strong, or through companies that benefit from these low commodity prices," said Robert Parker, senior advisor for investment strategy and research at Credit Suisse.

A local broker estimates the PSEi would need to fall 1,400 points to get to a 15 price earnings ratio--a 20 percent drop.

Counting on rising earnings may be difficult because earnings growth has been mostly disappointing.

COL Financial says two-fifths of the 56 listed companies it covers reported weaker than expected profit in the first half.

Meanwhile, a Philippine broker said the fall in PE doesn't have to be so big, estimating a PE of 16 to 17 would already be attractive. -- ANC

source: www.abs-cbnnews.com

Index surges as Greece reaches deal with creditors

MANILA - Share prices rallied yesterday as optimism prevailed after euro zone leaders clinched a deal with Greece to negotiate a third bailout plan.

The benchmark PSEi closed at 7,496.33, surging 103.74 points or a change of 1.40 percent.

The All Shares index closed at 4,268.78, higher by 41.57 points or 0.98 percent. All other indices closed higher with the mining and oil, property and the holding firms indices recording the biggest gains.

Value turnover amounted to P4.764 billion, down from Friday’s P6.790 billion.

“If all things push through as planned, that could reduce volatility in currencies and might prompt funds to reposition anew in equities,” said Grace Cerdenia, Research head at F. Yap Securities.

European leaders held yesterday a 17 -hour session, which has been described as one of the most contentious diplomatic standoffs in European Union history before finally reaching an agreement in Brussels.

According to reports, the agreement would require approval from European parliaments.

As part of the agreement, Greece must push through parliament a series of cuts and reforms, including divisive overhauls of its pension and tax system.

Read more on Philippine Star.

source: www.abs-cbnnews.com

Market shrugs off Greece debt default

MANILA, Philippines - Share prices rebounded yesterday, joining the uptrend in markets across the region despite news Greece became the first developed economy to default on a loan with the International Monetary Fund (IMF).

The Philippine Stock Exchange index (PSEi) posted a modest gain of 0.14 percent or 10.65 points to reverse losses in the morning session and close at 7,575.15.

The broader All Shares index also added 0.25 percent or 10.78 points to finish at 4,330.37.

Analysts said yesterday’s late surge was fueled by bargain hunting.

“Fund managers continued to anchor themselves on Greece, spotting for attractive bargains as most investors take another glance on the Philippine’s fundamental merits,” said Grace Cerdenia, research head at F Yap Securities.

The PSEi was well on its way to its third day losing session after falling 0.46 percent in the morning trade before catching up to the rest of its regional counterparts to end in the positive territory.

Most Asian shares advanced on Wednesday led by Japan’s Nikkei which climbed 0.4 percent.

Industrial and financial companies were down, slipping 0.33 percent and 0.06 percent, respectively.

Advancers overwhelmed decliners, 87 to 78, while 46 stocks were unchanged.

Turnover value, however, slowed down to P6.48 billion from the previous day’s P10.68 billion.

Read more on Philippine Star.

source: www.abs-cbnnews.com

Index claws back to 7,500-level on bargain hunting

MANILA, Philippines - The benchmark stock index bucked global adversity yesterday as it managed to eke out gains amid the slump in US and Asian markets.

The 30-company Philippine Stock Exchange index (PSEi) returned to the 7,500 level, advancing 0.66 percent or 49.32 points to close at 7,505.48.

The broader All Shares index likewise joined the uptick, adding 0.42 percent or 18 points to 4,312.27.

“PSEi closed up higher despite the weaker performance of the US markets mostly on bargain hunting,” said Luis Limlingan, managing director at Regina Capital Development Corp.

“Investors were speculating lower before the Federal Reserve meets and euro area finance ministers discuss Greece’s debt crisis,” Limlingan added.

The local stock market went against the downtrend in most Asian bourses including Japan’s Nikkei, China’s Shanghai Composite Index and South Korea’s Kospi.

In the US, Wall Street indexes were in the red on Monday ahead of a US Federal Reserve meeting on June 16 and 17.

All local counters, meanwhile, ended in the green led by services firms which picked up 1.16 percent.

Market breadth stayed negative as decliners continued to edge out advancers, 85 to 77, while 55 stocks were unchanged.

Turnover value was flat from the previous day at P7.43 billion.

Read more on Philippine Star

source: www.abs-cbnnews.com

Will PSE index reach 9,000 by 2016?

MANILA – Can the Philippine Stock Exchange index (PSEi) reach a high of 9,000 leading up to the 2016 national elections?

Ismael Cruz, president of IGC securities, said that based on PSEi data on the past six national elections since 1998, the market gained an average of 25 percent during election years.

But excluding the 1998 and 2001 election years—when market was down 14 and 3.6 percent, respectively—the market gained an average of 41 percent.

Citing the PSEi data, Cruz said for the 2004 elections, the market was up 45 percent; 34 percent for the 2007 elections; 49 percent for the 2010 elections; and 41 percent for the 2013 elections.

“If you want to apply the 25 percent minimum return on election on this 7,200 index, we will be at 9,000,” Cruz told ANC on Tuesday.

“Unbelievable, but that’s what the statistics say…I’m hopeful that this will happen,” he added.

The PSEi dropped to a five-month low 7,200 on Tuesday, but Cruz said the Philippine market is still in a “bull market,” and he expects the index to climb up by the third quarter of the year.

“We didn’t expect this kind of correction. It is a very sharp correction, it’s about 12 percent from the peak that we hit about early April when we are marking 8,136,” Cruz said.

“These are not good times for the market but we continue to be very confident because of our strong fundamentals in the market. We feel that what is happening is the Philippines is caught in a contagion. This contagion is the outflow of funds from emerging markets including Southeast Asian markets,” he added.

He said "when the dust settles," flows will come back to the
Philippines driven by its strong fundamentals.

source: www.abs-cbnnews.com

PSEi down nearly 3 percent this week

MANILA, Philippines - Philippine stocks fell almost 3 percent this week as the government released its worst GDP report in 3 years.

Government took the blame for continued weak public spending despite repeated pledges since last year to step on the economic gas pedal.

It was the PSE's second straight week down, with the first quarter earnings season ending last week with few stellar results.

On Friday, the PSE index closed at 7580.46, up 1.01 percent for the day but 2.9 percent down for the week.

Gainers on Friday were led by Bloomberry, Megaworld and Ayala Land.

Bloomberry, owner of Solaire Casino, and Megaworld made back some of their big losses this week. Bloomberry rose 4.4 percent to P9.70, while Megaworld jumped 3.7 percent to P4.75. It was Megaworld's second gain in two weeks.

Also up were shares of Pepsi Cola Products Philippines, after saying it would start making PepsiCo snacks, which include Cheetos, Lay's and Ruffles.

Decliners on Friday were led by Manila Water (-6.7 percent) and Puregold (-1 percent). Manila Water's rate cut, which it disputed, takes effect on Monday, though this was known weeks ago.

Friday's quick recovery from Thursday's GDP slump may indicate investors are hopeful the economic slowdown was blip or won't hurt this quarter's earnings, at least not much.

source: www.abs-cbnnews.com

PSEi up for 2nd straight day

MANILA, Philippines - The Philippine Stock Exchange index (PSEi) was among the best performers in the region on Tuesday, as inflation fell to a more than one-and-a-half year low.

Henry Sy's SM Prime Holdings was the biggest gainer, rising nearly 5 percent after it reported strong first quarter earnings on Monday.

Other big advancers include GT Capital Holdings, First Gen Corp. and LT Group Inc.

Overall, the PSEi surged 1.3 percent, closing back above the 7900 mark to 7,919.21. This was the main index's highest since April 28.

Market breadth was also positive, with advancers beating decliners 106 to 82.

At the foreign exchange market, the peso ended slightly stronger at P44.58 against the US dollar.

Meanwhile, most Southeast Asian stock markets rose on Tuesday, bucking the regional trend on slowing growth in China.

The Jakarta Composite index added 0.3 percent, though the country's economic growth in the first quarter slumped to its weakest annual pace since 2009, hit by soft global demand and a collapse in commodities.

Vietnam's benchmark VN Index gained 1.4 percent in high-volume trade after closing at its lowest in nearly a month in the previous session, while Malaysia was steady.

The Singapore index dropped 0.5 percent, trading near a one-month low, in line with Asian markets.

A survey released on Monday showed China's factories suffered their fastest drop in activity in a year in April. Surveys for Taiwan and Japan showed an index of factory activity slid below the 50-point level that separates growth from contraction compared to the previous month.

The Thai stock market was closed on Tuesday for a public holiday. - With ANC and Reuters

source: www.abs-cbnnews.com

PSEi closes above 8,000 for the first time

MANILA, Philippines - The Philippine Stock Exchange index (PSEi) closed above 8,000 for the first time.

The main index ended Monday's session at a new record of 8,053.74, up 0.76 percent, boosted by expectations of low inflation in March. This is the 25th record close notched by the PSEi this year.

The PSEi also hit a new all-time intraday high of 8,062.79.

Investors remain optimistic about the Philippine market given corporate expansions, such as in power and property, and are positioning their portfolios ahead of first-quarter results, said Astro del Castillo, managing director at First Grade Finance Inc in Manila.

Shares of SM Investment Corp, the country's biggest conglomerate by value, rose 2.1 percent, its biggest one-day gain since Feb. 9. The company said in a filing to the stock exchange on Monday that it is expecting 10-12 percent growth in recurring net income this year.

"Closing above the 8,000 level is significant as it reinforces the favorable view that investors have on our market. We are optimistic that the positive local developments and upbeat outlook on listed firms will provide more upside potential for the index,” said PSE President and CEO Hans B. Sicat.

Solaire casino operator Bloomberry Resorts Corp. was the biggest gainer, rising nearly 5 percent.

Telcos PLDT and Globe also surged over 3 percent.

At the foreign exchange market, the peso strengthened to P44.39 against the US dollar.

The greenback fell against most other currencies, as US employers added the least number of jobs last month in more than a year.

Southeast Asian stock markets mostly ended higher on Monday after weaker-than-expected U.S. jobs data raised doubts the Federal Reserve would hike interest rates any time soon.

The Indonesian stock index closed 0.4 percent up, led by a 2.5 percent gain in biggest bank by value Bank Central Asia Tbk.

"The dollar index has corrected and it gave the Indonesian market some positive support," said Muhamad Alfatih, an analyst with Samuel Sekuritas Indonesia in Jakarta.

The Indonesian rupiah advanced as much as 0.6 percent to 12,920 per dollar, its strongest since March 25.

Malaysian stocks rose 0.5 percent, while Vietnam .VNI was 0.9 down and Singapore ended marginally lower.

The Thai stock market was closed on Monday for a public holiday and will resume trading on Tuesday. - With Reuters and ANC

source: www.abs-cbnnews.com

PSEi closes above 7,900 level for the first time

MANILA, Philippines -- The Philippine Stock Exchange index (PSEi) extended its rally, ending closer to the 8,000 level it hit in early Monday trading.

Big gainers were led by Ayala Land and Jollibee Foods Corp., which both rose more than 2 percent.

SM Prime Holdings Inc. and Aboitiz Power Corp. also surged.

Overall, the main index closed at 7,940.49, up 0.52 percent. This was the first time the PSEi closed above the 7,900 level, and also surpassed Monday's record close of 7,899.41.

The PSEi joined most other Asian markets, which closed at their best quarter since 2012.

Investors bet the Fed will raise interest rates later than expected, while China ramped up stimulus and oil continued to fall.

"The PSEi managed to extend its gains for a fifth straight day on positive news coming out of US, Europe, and China. We are optimistic that the continuous flow of good news locally and from overseas will provide basis for the sustained growth of not only the index but overall market activity," PSE President and CEO Hans B. Sicat said.

The PSEi has had 23 record finishes and 17 intraday record highs since the start of 2015.

At the foreign exchange market, the peso strengthened to P44.70 against the US dollar. - With ANC

source: www.abs-cbnnews.com

PSEi ends 3-day winning streak; shares of Manila Water slump

MANILA, Philippines - Philippine shares snapped a three-day winning streak, succumbing to a regional downturn after China cut its 2015 growth target.

China on Thursday said it is aiming to grow its economy by 7 percent this year, below 2014's 7.5 percent goal. This is the country's lowest target in 15 years.

The PSE index fell nearly 0.4 percent to close at 7,819.04.

One of the day's biggest losers was Manila Water, whose shares plunged to as much as 13.3 percent. Manila Water shares closed 10 percent lower at P26.80.

Analysts say Manila Water, partly owned by Ayala Corp., was hit by market speculation that it lost an arbitration case for a rate hike petition.

Manila Water spokesperson Jeric Sevilla said no decision has been issued on the arbitration case.

The news also caused worries for Maynilad's own rate hike. Maynilad's owners Metro Pacific Investments and DMCI Holdings also traded lower.

At the foreign exchange market, the peso weakened to P44.12 against the US dollar.

HK, Shanghai down on China target

Meanwhile, Hong Kong and Shanghai markets sank in Asian trade Thursday after China set tepid 2015 economic and trade growth targets, while the euro fell to 11-year lows ahead of a key European Central Bank meeting.

Wall Street provided a negative lead again despite an upbeat report on the state of the US economy and another round of healthy private-sector jobs growth.

Hong Kong sank 1.11 percent, or 272.43 points to 24,193.04 and Shanghai lost 0.95 percent, or 31.05 points, to 3,248.48.

Sydney ended flat, edging up 2.57 points to 5,904.16 and Seoul was also virtually unchanged, nudging up 0.09 points to 1,998.38. Tokyo added 0.26 percent, or 48.24 points, to close at 18,751.84.

China's National People's Congress, the rubber-stamp legislature, opened with Premier Li Keqiang setting a growth target for this year of "approximately seven percent", which would be the slowest in 25 years.

The goal, which comes after a 7.4 percent rise in 2014, also comes as authorities look to set the world's number two economy on a more sustainable path after decades of breakneck growth.

Authorities also cut their trade growth target for this year to "around six percent" after missing its 7.5 percent goal in 2014 for the third consecutive year.

Over the past several months a slew of data has indicated a slowdown in the economy, including on manufacturing, inflation and trade.

In a work report, Li said China had been hit as the global economy faced headwinds, adding: "Downward pressure on China's economy has continued to mount, and we have faced an array of interwoven difficulties and challenges."

Traders seemed to be unimpressed with news that China will link up the Shenzhen and Hong Kong stock exchanges on a trial basis as part of its financial sector reform. However, Shenzhen's composite index rose 0.27 percent, or 4.53 points, to 1,677.77.

The move follows a similar scheme between Hong Kong and Shanghai that started in November. However, while officials trumpeted that as opening up China's closeted stock markets to the outside world, it has met with tepid demand in both cities.

Dollar-euro parity tipped

Regional investors are also keeping an eye on Europe, where the ECB will outline details of its bond-buying programme -- known as quantitative easing (QE) -- which is aimed at kickstarting the eurozone economy and fending off deflation.

The euro has suffered heavy selling as bank president Mario Draghi prepares to unveil the plan for the 60-billion-euros-a-month scheme.

The single currency fell at one point to $1.1028 Thursday, its lowest level since September 2003, before recovering marginally to $1.1058. That compared with $1.1080 late Wednesday in New York.

It was also at 132.44 yen compared with 132.63 yen in New York and much lower than 133.68 yen earlier Wednesday in Asia.

"The combination of deposit rates negative and QE is a very potent one, so it's very euro negative," Robin Brooks, chief currency strategist at Goldman Sachs, told Bloomberg news in Sydney.

"We have in our forecasts a very pronounced euro downswing, which is probably the most dollar-bullish forecast in all of our forecasts."

He added that the bank saw the dollar-euro reaching parity by the end of next year before the single currency falls further to 90 US cents by the end of 2017.

The dollar fetched 119.83 yen against 119.70 yen in US trade.

US markets ended lower for a second-straight session as dealers brushed off the Federal Reserve report showing the economy expanding moderately while payrolls company ADP said private firms hired more than 200,000 in February.

The Dow fell 0.58 percent, the S&P 500 lost 0.44 percent and the Nasdaq eased 0.26 percent.

On oil markets US benchmark West Texas Intermediate for April delivery was up 12 cents to $51.65 and Brent crude for April down 21 cents at $60.34.

Gold fetched $1,201.68 against $1,204.12 late Wednesday. - With reports from ANC, Reuters and Agence France-Presse

source: www.abs-cbnnews.com

PSEi closes at another all-time high

MANILA, Philippines - The Philippine Stock Exchange index surged to another all-time high on Wednesday, buoyed by expectations of easing inflation or the overall rise of prices of goods and services.

The main index closed nearly a percent up to 7,847.83, led by property companies Ayala Land Inc., Robinsons Land Corp., and SM Prime Holdings, ahead of the February inflation report due out on Thursday.

At least one analyst says expectations of further slowing inflation last month have boosted the outlook on many of the country's big property companies.

Lower inflation means the Bangko Sentral will have more room to keep rates at low levels, allowing consumers to borrow at cheaper rates to buy big-ticket items like houses or condo units.

At the foreign exchange market, the peso weakened to P44.10 against the US dollar.

Meanwhile, Asia markets mostly fell Wednesday following a retreat on Wall Street fuelled by profit-taking, with Tokyo hit by a stronger yen and Sydney dipping after data showed Australia's economy grew slower than expected last year.

With few trading cues investors are keeping a watch on the start of China's annual parliament meeting Thursday as well as European Central Bank details on its new bond-purchase scheme.

Tokyo lost 0.59 percent, or 111.56 points, to 18,703.60, Sydney, which ended at a seven-month high Monday, fell 0.54 percent, or 32.3 points, to 5,901.6 and Seoul lost 0.15 percent, 3.09 points, to 1,998.29.

Hong Kong fell 0.96 percent, or 237.40 points, to 24,465.38 but Shanghai rose 0.51 percent, or 16.48 points, to 3,279.53.

"The lack of fresh sparks has prompted investors to take profits and wait for new signals," Matthew Sherwood, Sydney-based head of investment markets research at Perpetual Ltd., told Bloomberg News.

Dealers took their lead from New York, where the three main indexes -- which have been on a six-year bull run -- ticked downwards after hitting key levels.

The Dow fell 0.47 percent and the S&P 500 slipped 0.45 percent, both a day after hitting new records. The Nasdaq slipped 0.56 percent after breaking 5,000 points for the first time in 15 years.

Tokyo led Asia's losers as the yen recovered slightly from recent losses against the dollar, with the greenback easing to 119.67 yen from 119.74 yen in New York Tuesday afternoon.

The euro bought $1.1171 and 133.68 yen against $1.1178 and 133.85 yen.

Slow Australian economy

In Australia, official figures showed the economy grew 0.5 percent on-quarter in the three months to December and 2.5 percent over the whole of 2014 -- below forecasts of 0.7 percent and 2.6 percent respectively.

The news comes a day after the Reserve Bank of Australia held off cutting interest rates for a second-straight month, but analysts say it will likely act again soon as jobless queues become longer and consumers stop spending.

Focus will next turn to the meeting of China's rubber-stamp legislature, the National People's Congress, at which Premier Li Keqiang is expected to deliver an address on the state of the economy.

Later in the day the ECB will hold its next policy meeting and outline details of the asset-purchase programme that it is launching in a bid to kickstart the eurozone economy and fight off deflation.

Oil prices were mixed ahead of the release of a key US energy inventory report later in the day. US benchmark West Texas Intermediate rose eight cents to $50.60 while Brent crude eased 31 cents to $60.71.

Prices rose Tuesday on news of growing unrest in exporter Libya.

Gold fetched $1,205.23 against $1,207.80 late Tuesday. - With reports from ANC and Agence France-Presse

source: www.abs-cbnnews.com

PSEi up for 8th day

MANILA, Philippines - The Philippine Stock Exchange index (PSEi) is up for an 8th straight day, with property companies leading the rally.

The PSEi gained 0.11 percent to close at 7,834.86, a fresh all-time high.

SM Prime Holdings, which reported strong 2014 earnings on Monday, was the day's biggest gainer, rising as much as 3 percent.

Other advancers include Ayala Land, Megaworld and Century Properties.

CBRE Philippines said it expects the property sector to continue its strong growth, driven by the hospitality, gaming and retail industries.

At the foreign exchange market, the peso weakened to P44.33 against the US dollar.

Meanwhile, Southeast Asian stock markets traded stronger on Tuesday, although gains were capped as investors looked to Federal Reserve Chair Janet Yellen's statement later in the day for signs of when the U.S. central bank would raise interest rates.

The Thai SET index was up 0.5 percent by midday, led by a 1.8 percent gain in the country's top oil firm, PTT.

Yellen will deliver the central bank's semi-annual Monetary Policy Report to the Senate Banking Committee later in the day, in the first of two days of testimony to Congress on the state of the economy. And there is much uncertainty over whether she will echo the dovish tone of the minutes from the Fed's last meeting, or reaffirm June as a window for a first rate hike.

"Market traders continue to be cautious in the wake of 'unsettled issues' in Greece, but were also optimistic that China may lead the way with further market easing news," Singapore-based NetResearch Asia said in an investor note.

Euro zone ministers late on Friday agreed to extend Greece's financial rescue package by four months, a shorter extension than the six months the country had sought. But concerns over Greece's willingness for required reforms weighed on sentiment.

Singapore was up 0.3 percent, Malaysia traded 0.4 percent firmer, and Vietnam, which resumed trading after long holidays, gained 1 percent.

In Kuala Lumpur, energy shipping company MISC Bhd jumped 5.4 pct to its highest since July 2011 after it entered into an agreement with controlling shareholder Petroliam Nasional Bhd and South Korean shipbuilder Hyundai Heavy Industries Co Ltd, to build five liquefied natural gas carriers. - With reports from ANC and Reuters

source: www.abs-cbnnews.com

PSEi closes at 12th all-time high for 2015

MANILA, Philippines - The Philippine Stock Exchange index managed to close at its 12th all-time high this year, after a generally subdued trading session on Tuesday.

The Ayala group's Integrated Microelectronics Inc. was the biggest gainer, after it announced an P0.18 per share cash dividend, following strong 2014 earnings.

The biggest index gainers included Andrew Tan's Emperador Inc. and Alliance Global Group, as well as SM Prime Holdings and Lopez Group's First Gen Corp.

Those companies helped the main index rise over a tenth of a percent to 7,793.40, amid choppy trading among Asian markets as investors weighed the impact of stalled Greek debt talks on the global financial market.

At the foreign exchange market, the peso was flat at P44.245 against the US dollar.

Asian stocks mixed ahead of break

The euro weakened Tuesday after the showdown debt talks between Greece and its creditors collapsed, raising the possibility the country will be dumped out of the eurozone.

However, many equity markets were unfazed by the trouble in Europe as trade begins to wind down in several Asian bourses before the Lunar New Year holiday at the end of the week.

Tokyo fell 0.10 percent, or 17.68 points, to 17,987.09 and Sydney lost 0.52 percent, or 30.5 points, to 5,858.2.

But Seoul gained 0.16 percent, or 3.22 points, to 1,961.45, while Shanghai gained 0.76 percent, or 24.55 points, to 3,246.91 and Hong Kong advanced 0.24 percent, or 58.35 points, to 24,784.88.

"Markets recognised the discussions were going to be difficult, so I don’t think this changes people’s expectations dramatically," Angus Gluskie, managing director at White Funds Management in Sydney, told Bloomberg News.

"But it is a key point of uncertainty for investment markets, so it’s likely to mean that investors will continue to be cautious."

The closely watched meeting Monday broke down without agreement on Greece's debt after Athens refused eurozone finance ministers' demands that it apply for an extension to its bailout.

Eurogroup head Jeroen Dijsselbloem said the country had the rest of the week to make the request, with the 240 billion euro ($270 billion) lifeline expiring at the end of the month.

But an Athens source dismissed the demand to stick to its current bailout as "absurd".

Greece's new left-led government swept to power last month on a platform of overhauling the terms of the austerity-laden financial aid package, which it says has crippled the economy.

Finance Minister Yanis Varoufakis is looking for a six-month bridging loan to give Greece time and financial help to negotiate a new deal.

However the 18 other eurozone nations, led by Germany, say any changes must be within the current programme.

The breakdown hit the euro, which sank to $1.1351 and 134.47 yen from $1.1390 and 134.53 yen in London.

It was also sharply down from the $1.1421 and 135.43 yen levels earlier Monday in Tokyo.

The dollar bought 118.52 yen against 118.47 yen.

US markets were closed Monday for a public holiday.

Oil prices moved higher after key crude producer Kuwait signalled that the recent rise in prices would hold, while resurgent violence in Libya also provided support.

US benchmark West Texas Intermediate for March delivery rose 41 cents to $53.19, while Brent crude for April gained 51 cents to $61.91.

Gold fetched $1,223.28 an ounce, against $1,233.33 on Monday. - With ANC and Agence France-Presse

source: www.abs-cbnnews.com