Stocks rose slightly Tuesday after President Rodrigo Duterte promised more economic and tax reforms in his fourth State of the Nation Address.
The Philippine Stock Exchange index, the 30-company benchmark, gained 4 points, or 0.1 percent, to close at 8,251.46. The bellwether is up 10.5 percent since the start of the year.
The broader all-share index, however, dropped 3 points, or 0.1 percent, to settle at 4,990.95 on a value turnover of P6.7 billion. Losers outnumbered gainers, 103 to 88, while 57 issues were unchanged.
Ten of the 20 most active stocks ended in the green, led by Wilcon Depot Inc. which climbed 3.5 percent to P16.14. Robinsons Land Corp. gained 1.8 percent to P28, while SM Investments Corp. rose 1.7 percent to P1,000.
Meanwhile, most Asian markets also rose Tuesday, tracking gains on Wall Street with confidence given a boost by a positive earnings season and speculation top US and Chinese negotiators will hold face-to-face trade talks soon.
A bipartisan agreement to raise the US debt ceiling to fund the government for another two years—avoiding another painful shutdown—also provided some cheer.
The gains across the board come a week before the Federal Reserve holds its next policy meeting at which it is expected to cut interest rates, with a big question over how deep it will go.
While uncertainty remains over the outlook for the global economy, investors have been cheered by the earnings season so far as a number of reports have come in above forecasts, though analysts point out that expectations had been low.
Attention is now on the upcoming releases by tech titans including Amazon, Facebook and Google, with Boeing, Caterpillar, American Airlines and Coca-Cola also in line.
“Markets feel poised for some increased volatility,” Nick Twidale, director and co-founder of financial technology platform X-Chainge, said in a commentary.
“Traders will be looking to see how much trade issues have affected the bottom line of some of the big players, although news the talks between the two trading superpowers could resume next week should support underlying sentiment,” he added.
Tokyo ended one percent higher, while Hong Kong added 0.3 percent in the afternoon and Shanghai put on 0.5 percent by the close.
Sydney and Singapore each added 0.5 percent while Seoul gained 0.4 percent. Wellington, Taipei and Jakarta were also in positive territory.
In early trade, London and Paris each rose 0.6 percent while Frankfurt gained 0.8 percent.
Hopes for progress in the China-US trade row are brightening with reports saying there is a possibility that high-level talks could take place soon.
Donald Trump held a meeting with the CEOs of some of the biggest American tech firms Monday to discuss a number of issues including his decision to effectively ban Chinese giant Huawei from trading with any US companies.
The ban is a key bone of contention in the trade standoff, which has dragged on the global economy since last year.
Oil prices edged up as traders keep tabs on the rumbling Iran crisis after it seized a UK-flagged tanker in the Gulf on Friday. With AFP
However, while there are concerns about a possible conflict in the region, analysts pointed out that the commodity remains weighed down by supply and demand issues.
“While oil prices remain supported by Middle East geopolitical risk, the market’s reaction has been muted due to the ascendency of United States shale production, which is tempering supply risk premiums,” said Vanguard Markets’ Stephen Innes.
The dollar was down against most higher-yielding, riskier units as dealers jockey for positions ahead of the Fed policy meeting.
The pound dropped ahead of the election of a new British prime minister later Tuesday, with arch-Brexiter Boris Johnson widely expected to win, raising concerns he will push for an exit from the European Union without an economic plan in place. With AFP
