Stocks closed flat amid thin trading Tuesday, as investors await the release of more financial reports by companies and after a top US Federal Reserve official said the bank could lift interest rates as soon as next month.
The Philippine Stock Exchange index, the 30-company benchmark, picked up 1 point to close at 7,282.68, as four of the six sectoral indices rose.
The heavier index, representing all shares, lost 3 points, or 0.1 percent, to settle at 4,404.59, on a value turnover of P5.7 billion. Losers outnumbered gainers, 111 to 85, while 48 issues were unchanged.
Eleven of the 20 most active stocks ended in the green, led by developer Arthaland Corp. which climbed 20.6 percent to P1.23, continuing its wild swings this year.
Cemex Holdings Philippines Inc., a cement manufacturer, rose 2.7 percent to P9.43, while appliance maker Concepcion Industrial Corp. gained 2.6 percent to P60.
Meanwhile, Asian stocks traded higher Tuesday. Global equities are trading near a record after Trump’s election spurred optimism in economic growth amid signs of an inflation pickup.
With Wall Street’s trading floors closed for the Presidents Day holiday, there was little to drive business but the optimism that was prevalent last week continued to flow in early exchanges.
Europe provided a tepid lead with hopes of a bailout deal for Greece tempered by signs of growing anti-EU sentiment in France ahead of the presidential election in April and May.
In Tokyo, the Nikkei index ended the morning session 0.5 percent higher as exporters were lifted by the weaker yen.
The dollar climbed to 113.46 yen from 113.09 yen Monday following comments from the head of the Fed’s Philadelphia branch, Patrick Harker, that a March rate rise was not “off the table at this point”.
Expectations of a hike have increased since Donald Trump was elected president in November as dealers bet his big-spending, tax-cutting plans will fan inflation. And the latest reading on prices increases, as well as healthy jobs growth and factory activity, have reinforced that view.
Hong Kong added 0.2 percent in the morning and Shanghai was up 0.3 percent while Seoul put on one percent. Sydney was flat while Singapore dipped 0.1 percent.
On currency markets Stephen Innes, senior trader at OANDA, said the euro “traded a little heavy, but with much ink spilled over the French elections, (it) has held remarkably well.”
“Traders donned their noise-canceling headphones, not wanting to get emotionally caught in EU political melodrama at this stage.”
Investors are keeping an eye on the release this week of Fed minutes from its most recent policy meeting hoping for fresh clues about its plans for rates, while preliminary factory figures are also due this week from the US and Europe. With Bloomberg, AFP