Southeast Asia market takes a pause after recent gains

SOUTHEAST Asian stock markets took a pause yesterday after recent sharp gains, with the Philippine index retreating from a record high hit in the previous session.

Investors also turned cautious after US President Donald Trump signed into law a steep tariff on imported solar panels, which is among the first unilateral trade restrictions imposed by the administration as part of a broader protectionist agenda.

“While washing machines and solar panels themselves constitute a negligible portion of US imports, it is more crucial to see whether there are more trade measures to come,” Mizuho Bank said in a note.

The Philippine stock index dropped as much as 0.5 per cent and was headed for its first session of decline in four.

It has gained more than 4.5 per cent so far this year.

“The index broke above the 8,969 resistance yesterday and technically we think it’s on the way to hit 9,150, but we might see some downturn,” said Benjamin Ngan, a research analyst with RCBC Securities in Manila. The Department of Finance plans to submit a tax package, complementing its second package which aims to adjust taxes on alcohol, tobacco, mining and coal, the analyst said.

“This may be weighing on the market, especially consumer stocks,” Ngan added.

Industrials were the biggest losers on Wednesday with SM Investments Corp shedding as much as 1.4 per cent.

Indonesian shares hit a fresh high before declining as much as 0.3 per cent after a seven-session rally.

Index heavyweight Telekomunikasi Indonesia (Persero) Tbk Perusahaan Perseroan PT dropped as much 1.5 per cent in what could be its sixth consecutive session of decline.

Singapore shares fell as much as 0.3 per cent before erasing losses.

United Overseas Bank Ltd slipped as much as 0.8 per cent, while Keppel Corp Ltd fell up to 1.6 per cent.

Vietnam’s Ho Chi Minh stock exchange was closed for a second day on technical issues.