Stocks rose for a third day, as investors cheered the government’s announcement the Philippine economy grew 7.1 percent year-on-year in the third quarter and the bullish comments from the US Federal Reserve.
The Philippine Stock Exchange index, the 30-company benchmark, gained 17 points, or 0.2 percent, to close at 7,067.73 Friday. This pushed up the bellwether’s total gains this year to 1.7 percent.
The heavier index, representing all shares, also picked up 11 points, or 0.3 percent, to settle at 4,254.28, on a value turnover of P5.9 billion. Advancers outnumbered losers, 90 to 81, while 50 issues were unchanged.
Four of the six sectoral indices advanced, led by mining and oil. Among the 20 most active stocks, 10 ended in the green, led by Semirara Mining and Power Corp. which climbed 6.4 percent to P133.50 and DMCI Holdings Inc. which rose 3.1 percent to P13.40.
Meanwhile, a new batch of economic data portrayed the world’s largest economy as being in generally good health: weekly jobless claims hit a 43-year low, the consumer price index posted its strongest gain in six months and monthly housing starts increased.
In New York, the tech-heavy Nasdaq gained 0.7 percent while the S&P 500 rose 0.5 percent. The Dow Jones Industrial Average held onto positive territory, adding 0.2 percent, but was weighed down by a 3 percent drop in global retail giant Wal-Mart Stores, which posted disappointing third-quarter revenues.
Equities in Europe also rose, with London’s benchmark FTSE 100 up 0.7 percent and the CAC 40 in Paris gaining 0.6 percent.
But Asian markets were directionless, suffering fresh volatility as uncertainty permeates trading floors after the shock election win of Donald Trump.
Comments in Washington by Federal Reserve chief Janet Yellen that an interest rate increase likely will be appropriate “relatively soon” gave a further shot in the arm to the dollar.
The comments supported market expectations that the US Federal Reserve will hike historically low US interest rates when it meets next month and saw the dollar gain against the euro, yen and pound.
“The dollar is enjoying another resurgence after somewhat of a lull yesterday, with Janet Yellen’s hawkish comments further raising expectations of a December hike,” said market analyst Joshua Mahony at online trading firm IG.
Yellen said that since the Fed’s last policy meeting, “I do think that the economy’s making very good progress toward our goals and that the judgment the committee reached in November still pertains.”
Investors have been struggling to gauge the outlook for the global economy under a Trump presidency after his rhetoric on trade agreements and spending plans.
In oil markets, traders were waiting to see if the producers could make good on a September agreement to cut crude output. Crude prices surged this week on news the Organization of the Petroleum Exporting Countries and Russia were pushing for an agreement before its twice-yearly meeting on November 30.
“We’ve been held in check today somewhat by a strong US dollar,” Matt Smith of ClipperData said of oil prices.
Oil futures settled lower in New York and London, changing directions after recent gains. With AFP, Bloomberg
