Philippine stocks rebounded, but the peso slid past the 58-a-dollar level Friday as government agencies began counting the damage from Typhoon Kristine.
The 30-company Philippine Stock Exchange (PSE) index close above the 7,300 level on profit-taking after two straight days of decline. It ended the week at 7,314.23, up by 30.44 points, or 0.42 percent, from Thursday, while the broader all-shares index picked up 9.88 points, or 0.25 percent, to close at 4,017.27.
The peso, however, slumped to 58.32 against the US dollar Friday, following the resumption of trading after it was disrupted by the typhoon Thursday.
Philstocks Financial Inc. research head Japhet Tantiangco said the stock market bounced back as investors hunted for bargains.
He said third-quarter corporate results and positive net foreign buying also boosted the market. Value turnover remained weak at P3.63 billion, below the year-to-date average of P5.18 billion. Net foreign buying amounted to P7.61 million.
Financials led the sectors, advancing 0.97 percent, while services rose 0.76 percent. Properties declined 0.67 percent, while industrial slipped 0.17 percent.
Gainers outnumbered losers 110 to 81. Bank of the Philippine Islands emerged as the top index gainer, rising 5.04 percent to P146, while Wilcon Depot Inc. dropped 2.29 percent to P16.22.
Meanwhile, Japanese shares ended down on Friday but Chinese markets gained in disjointed Asian trade, after Wall Street cheered strong results from electric car giant Tesla.
US futures were holding steady after Elon Musk’s company surged nearly 22 percent on the back of higher earnings following a streak of disappointing results, helping to lift the Nasdaq and S&P 500.
The Dow, however, was pulled lower by disappointing results from IBM and Honeywell.
In Asian trade on Friday, Tokyo stocks closed more than half a percent lower, while Hong Kong and Shanghai saw healthy gains.
Stephen Innes of SPI Asset Management pointed to uncertainty over elections this weekend and an upcoming Bank of Japan meeting as complicating the outlook for Japanese equities.
“And let’s not forget USD/JPY blowing past the 150 mark. Finance Minister Katsunobu Kato is ringing the alarm bells, warning of ‘one-sided’ moves in the yen. Still, BOJ Governor (Kazuo) Ueda seems to be in no rush to do anything drastic,” he said.
“Between election jitters and BOJ chess moves, Tokyo markets are probably in for a busy opening on Monday.”
Chinese markets, meanwhile, were recovering from their losses of the previous day, encouraged by a rebound in real estate sales, which fueled optimism about economic growth.
Taipei, Seoul, Sydney, Bangkok and Manila were also higher, but Singapore, Jakarta, Mumbai and Wellington lost ground.
Paris, London and Frankfurt were all down.
In the United States, Treasury yields have pushed higher in recent days, although they retreated on Thursday, with uncertainty on trading floors growing less than two weeks ahead of US elections in which the outcome is still far from clear.
Observers say some dealers are eyeing a win for Donald Trump and policies such as tax cuts that could stoke inflation.
That, along with a strong run of US economic data and remarks from Federal Reserve officials backing a cautious approach to easing monetary policy, has seen expectations for rate cuts whittled back.
US equities were “somewhat mixed at the close” and “for a change, the US dollar has actually lost value”, said Phil Dobbie on National Australia Bank’s Morning Call podcast. With AFP
