The stock market rose slightly Tuesday after plunging the other day on modest bargain-hunting and following another record-breaking lead from Wall Street.
The Philippine Stock Exchange Index added 28.85 points, or 0.4 percent, to 7,730.45 on a value turnover of P10.4 billion. Losers, however, overwhelmed gainers, 138 to 51, withy 52 issues unchanged.
International Container Terminal Services Inc., the biggest port operator owned by tycoon Enrique Razon Jr., advanced 5.6 percent to P135, while Manila Electric Co., the largest retailer of electricity, climbed 4.9 percent to P317.80.
Metro Pacific Investments Corp., which has interests in toll roads, water and electricity distribution, hospitals and infrastructure, rallied 4.6 percent to P3.19, but Manila Water Co. Inc. plunged 35.8 percent to P6.
Meanwhile, most Asian markets rose Tuesday, with the China-US trade deal providing further support, though sterling took a battering as fresh fears of a no-deal Brexit emerged.
Christmas cheer continues to flow through trading floors after Friday’s agreement between the world’s top two economies ended months of wrangling and removed any immediate uncertainty.
The deal, which will see Washington wind back some tariffs and China ramp up purchases of US goods as well as change its trade practices, sparked a surge in equities that continued Monday in New York, with all three main indexes ending at all-time highs.
And, while Asia saw a slight wobble Monday, the optimism seeped into the region in early business, With Hong Kong and Shanghai rallying more than one percent, while Tokyo ended 0.5 percent higher.
Seoul and Taipei both also jumped more than one percent, while there were also gains for Mumbai, Bangkok, Taipei, Wellington and Jakarta, though Sydney and Singapore were marginally lower.
But while the news has been met with broad relief, observers point out that the deal is only the first—and easiest—part of a wider agreement many think could take years to complete.
There are also concerns about the lack of detail and questions about how the two sides will implement the pact.
“Some salient doubts remain, of course, about the interim trade deal,” said Jeffrey Halley at OANDA, adding that they also had yet to sign anything.
“The supposed phase-two talks promise to take negotiation complexity to another level in 2020. A fundamental clash of doctrines between East and West on the mechanics of capitalism beckons, and I for one, have serious doubts about as to whether a fabled ‘comprehensive’ deal will emerge next year at all,” he said.
On currency markets the pound took a hit from reports that Prime Minister Boris Johnson is planning to bring in a law making sure the next phase of Brexit is not extended beyond the end of 2020, reviving fears of a no-deal divorce.
While Johnson, fresh from a stunning election victory, will be able to push through his EU agreement before January 31, he will then have to hammer out fresh trading terms.
But there is a fear that the 11-month timeframe he has set himself to complete that is nowhere near long enough, meaning Britain could completely break free without any kind of plan for trading with the bloc. With AFP
