Stocks rose for a fourth day, following the gains of New York’s Dow index which racked up a ninth successive all-time high, its longest record streak in 30 years.
The Philippine Stock Exchange index, the 30-company benchmark, rose 31 points, or 0.4 percent, to close at 7,335.56 Thursday. Four of the six sectoral indices advanced, led by the financial sector.
The heavier index, representing all shares, increased 15 points, or 0.4 percent, to settle at 4,427.27, on a value turnover of P7.3 billion. Advancers outnumbered losers, 92 to 82, while 51 issues were unchanged.
Fourteen of the 20 most active stocks ended in the green, led by Semirara Mining and Power Corp. which climbed 2.8 percent to P149 and BDO Unibank Inc. which advanced 2.7 percent to P118.90. Globe Telecom Inc. added 2.2 percent to P1,840.
Meanwhile, Most Asian equities fell, after minutes from the Federal Reserve’s latest meeting showed officials confident they can raise rates gradually. Oil rallied.
Stocks in Hong Kong led declines in Asia and Japan’s Topix pared earlier losses, while the Bloomberg Dollar Spot Index strengthened to recover some of Wednesday’s retreat.
Treasuries maintained the previous session’s advance. Crude rebounded ahead of government data on stockpiles, while metals declined for a third day.
Fed policy makers expressed confidence they can take their time raising rates as there’s little threat inflation will suddenly accelerate, according to the minutes. Officials wrestled with uncertainty on issues ranging from the Trump administration’s fiscal stimulus plans to the headwinds a rising dollar may pose. The odds for an increase in March retreated to 36 percent. Allianz SE chief economic adviser Mohamed El-Erian said that seems “too low.”
Japanese car giant Nissan fell after Carlos Ghosn, the man considered its savior, stepped down as chief executive.
While New York’s Dow index racked up a ninth successive all-time high, its longest record streak in 30 years, analysts said there was a sense that the advance may have gone too far.
The dollar picked up slightly but was unable to fully bounce back from Wednesday’s sell-off after minutes from the Federal Reserve’s latest board meeting showed policymakers expect a rate hike “fairly soon” but also see increases being gradual.
While they cited “heightened uncertainty” about possible US policies that could lift inflation, hastening the need for rate hikes, that was not enough for dealers who had hoped for a firmer guidance.
Apart from taking a breather in January, world markets and the dollar have been on an upward trajectory since Donald Trump’s November US election win on bets his big-spending, tax-cutting plans would fire the US and global economy.
But Greg McKenna, chief market strategist at CFD and FX provider AxiTrader, said in a note there appears to be some skepticism of the likely effectiveness of Trumponomics as well as worries from some hedge funds that any big news has been priced in.
He added that there were an increasing number of investors betting on a retreat.
“When folks are starting to think and talk like this, it tells me that there could be a subtle shift in market thinking. This is because the Trump rally has now exceeded most US equity market strategists’ guesstimates of where US stocks would end 2017,” he said.
In Tokyo the Nikkei index ended flat as the dollar dragged on exporters but having pared sharper morning losses.
Hong Kong shed 0.4 percent in the afternoon, Shanghai closed 0.3 percent down and Sydney shed 0.4 percent, while Taipei and Bangkok also retreated. With AFP, Bloomberg
