Shares snap 3-week winning streak


Posted at Jun 16 2017 04:03 PM

MANILA - Share prices closed weaker on Friday, ending lower for the week, after three straight weeks of gains, due to profit-taking.

The Philippine Stock Exchange Index was down 1.03 percent to 7,882.22. The main index was down 1.3 percent from the previous week.

Concerns over the absence of President Rodrigo Duterte from public view this week gave investors an excuse to cash in, said BDO Capital President Ed Francisco.

"Volumes are still decent. Some took profits. There have been a lot of bloc trades," Francisco told ANC's Market Edge with Cathy Yang.

Nothing in the fundamentals have changed in the market," he said.

Asian stocks steadied, taking in stride the resumption of the US technology rout overnight, and European shares look set for a positive start following Thursday's losses.

Japan's Nikkei advanced 0.7 percent, narrowing its loss for the week to 0.3 percent.

MSCI's broadest index of Asia-Pacific shares outside Japan slipped about 0.1 percent, on track to end the week down 0.85 percent.

Financial spreadbetters expect Britain's FTSE 100, Germany's DAX and France's CAC 40 to all open up about 0.2 percent.

Overnight, the Nasdaq led losses on Wall Street with a 0.5 percent drop, dragged lower by shares including Apple and Alphabet that tumbled on bearish analysts' reports. The S&P 500 technology index also declined 0.5 percent.

The broader S&P 500 index fell 0.2 percent and the Dow Jones Industrial Average slipped 0.1 percent.

"It was a brutal day for the tech sector once again as investors are increasingly more worried about the (Federal Reserve) tightening cycle and how that would put a number of firms in trouble," Naeem Aslam, chief market analyst at ThinkMarkets in London, wrote in a note.

"The tech boom has been on the back of easy money and lower interest rates. Both of them are leaving town."

South Korea's KOSPI slipped about 0.1 percent, surrendering early gains. The biggest company, Samsung Electronics added 0.1 percent.

The second biggest firm, semiconductor concern SK Hynix , hit a 15-year high before pulling back to trade 0.2 percent lower.

The technology-heavy Taiwan index widened gains to 0.6 percent, with the biggest company, Taiwan Semiconductor Manufacturing Co. jumping 1.7 percent and Apple supplier Hon Hai Precision Industry surging 2.5 percent.

"This is long overdue... There's a clear discrepancy, where Asia and emerging market tech names are still being discounted compared to their western counterparts," said Kay Van-Petersen, global macro strategist at Saxo Capital Markets in Singapore.

"Historically that made sense, but politically, things are potentially a lot more stable in Asia than in developed markets as a whole."

The dollar index, which tracks the greenback against a basket of trade-weighted peers, climbed to a two-week high.

Data overnight showing the number of Americans filing for unemployment fell more than expected last week, and better-than-expected business conditions in June bolstered the case for Federal Reserve tightening this year.

The index rose 0.1 percent to 97.539, extending Thursday's 0.5 percent gain. It's on track for a 0.3 percent rise this week.

On Wednesday, the Fed raised interest rates as widely expected, and also released some preliminary details of its plan to begin paring its $4 trillion-plus debt holdings.

Sterling added almost 0.1 percent to $1.2769. On Thursday, it jumped to as high as $1.2795 on signs of a shift in the Bank of England's stance on keeping interest rates at record lows.

But it fell back to close flat, as monetary policy uncertainty added to existing concerns about Britain's political outlook after Prime Minister Theresa May failed to win a parliamentary majority in last week's election.

In commodities, oil was subdued on continued worries over rising US gasoline inventories adding to already elevated global supply.

US crude fell 0.1 percent to $44.49 a barrel, remaining near Thursday's six-week low, on track for a 2.9 percent drop for the week.

Global benchmark Brent crept up 0.1 percent to $46.97, set to end the week 2.45 percent lower.

The dollar's strength kept gold flat at $1,252.92 an ounce, failing to make up Thursday's 0.6 percent drop. It is poised to close the week with a 1 percent loss, its second weekly decline. -- with reports from Reuters