Stocks slip on lack of positive catalysts

MANILA, Philippines — Local stocks closed nearly flat yesterday, with Asian markets holding onto their gains for the week as confidence grows that interest rates globally will head lower next year, while oil prices fell on the prospects for smaller-than-expected output cuts by OPEC+.

The benchmark Philippine Stock Exchange index closed at 6,246.20 yesterday, down by 6.98 points or 0.11 percent, while the broader All Shares index slipped to 3,328.01, down by 2.03 points or 0.06 percent.

Total value turnover was thin at P2.33 billion. Market breadth was negative, 91 to 74, while 48 issues were unchanged.

Mikhail Plopenio of Philstocks Financial said the local market dropped as the lack of a positive catalyst caused investors to take profits.

“The bourse made gains intra-day, rising up to 6,259.66 before sellers prevailed. Also, the lack of a positive catalyst together with the ongoing economic concerns both at home and offshore caused many to remain on the sidelines,” he added.

Around Asia, investors are also looking to Chinese policymakers for clues on possible support for the long-suffering property market, in line with broader growth targets they are hammering out.

Bloomberg reported late on Wednesday that China has placed debt-laden Country Garden Holdings Co. on a draft list of 50 developers eligible for a range of financing support, citing sources.

Meanwhile, a large wealth manager with heavy exposure to the property market disclosed that it faces insolvency with relevant liabilities of up to $64 billion.

Chinese government advisers will recommend to an annual policymakers’ meeting that economic growth targets for next year be set at 4.5 to 5.5 percent, Reuters reported on Wednesday.

Trading worldwide was expected to be quiet due to the Thanksgiving holiday in the US.

The US market, which has priced out the chances of another rate hike in December, shrugged off strong weekly jobs data Wednesday night that may nevertheless reduce the prospects for quicker-than-expected rate cuts by the Federal Reserve, said Redmond Wong, Greater China market strategist at Saxo Markets.