The stock market rose Thursday on bargain-hunting and in anticipation of better corporate earnings results in the second quarter of the year.
The Philippine Stock Exchange Index gained 24.57 points, or 0.3 percent, to 8,258.05 on a value turnover of P5.6 billion. Gainers overwhelmed losers, 116 to 79, with 52 issues unchanged.
Bank of the Philippine Islands, the third-biggest lender in terms of assets, climbed 2.3 percent to P92, while Security Bank Corp., the sixth largest bank, advanced 2.9 percent to P187.40.
Globe Telecom Inc., the second-biggest telecommunications firm, rose 2.3 percent to P2,230, while GT Capital Holdings Inc. of the Ty Group added 2.1 percent to P930.
The rest of Asian markets fell on Thursday, hit by concerns about the uncertain global economic outlook, the China-US trade war and tepid corporate earnings reports.
With an expected Federal Reserve interest rate cut already priced in, having fueled a healthy rally, and few other catalysts to drive buying, analysts said investors are also cashing out.
The losses in Asia followed a negative lead from Wall Street, where big-name firms including Caterpillar and United Technology sank on weak corporate reports.
“Stocks’ strong gains are finally succumbing to profit-taking,” Alec Young at FTSE Russell told Bloomberg News.
“Earnings and guidance so far have been mixed and, given the big run-up, it’s no surprise there’s little investor tolerance for even a hint of disappointment.”
Tokyo led losses, sinking two percent as it was hit by a stronger yen and data showing another drop in exports as Japan feels the impact of falling demand and global trade uncertainty.
Hong Kong ended down 0.5 percent and Shanghai shed one percent, while Sydney and Singapore each gave up 0.4 percent.
Seoul fell 0.3 percent, with traders unmoved by the Bank of Korea’s first interest rate cut in three years. The won edged up.
Taipei was off 0.3 percent and Mumbai eased 0.4 percent. However, Wellington, Jakarta and Bangkok eked out small gains.
Energy firms across Asia tracked their US counterparts following another steep drop in oil prices Wednesday that came after government data showing a pick-up in US gasoline inventories. Oil was barely moved Thursday.
The figures represent the weakest demand in five years, analysts said.
“Gasoline consumption is painfully weak given US consumers are in peak driving season, which will be invariably seen as the Grim Reaper of sorts,” said Stephen Innes at Vanguard Markets.
“If we put this data set in the context of slowing China second-quarter GDP, where consumption was the most significant drag, the numbers do suggest that the global economic slowdown is being echoed through weaker global demand data. Definitely a bearish signal for oil demand.”
The dollar fell against its main peers and most high-yielding currencies, having enjoyed a recent rally, on concerns about the length and depth of expected Fed rate cuts. With AFP
