Stocks rose for a third day, as Asian markets followed a rally in the US, lifted by rising oil prices and strong eurozone economic data.
The Philippine Stock Exchange index, the 30-company benchmark, climbed 21 points, or 0.3 percent, to close at 7,304.45, as all six sectoral indices advanced.
The heavier index, representing all shares, gained 7 points, or 0.2 percent, to settle at 4,411.71, on a value turnover of P7.2 billion. Losers outnumbered gainers, 101 to 88, while 52 issues were unchanged.
Ten of the 20 most active issues ended in the green, led by cement producer Cemex Holdings Philippines Inc. which climbed 3.9 percent to P9.80 and retailer Puregold Price Club Inc. which went up 3.6 percent to P46. Property developer Ayala Land Inc. rose 3.4 percent to P37.60.
Meanwhile, the MSCI Asia Pacific index climbed to the highest level since July 2015, with Chinese shares traded in Hong Kong resuming a rally.
The dollar slipped against the yen early in the Asia trading day as Federal Reserve Bank of Cleveland President Loretta Mester said policy makers don’t want to surprise the market on interest rates. Oil extended gains above $54 a barrel. Australian debt held declines after the government’s biggest-ever bond sale.
Global equities are trading at the highest levels ever even as money managers are grappling with political uncertainty as the Fed prepares to lift interest rates again later this year.
Expectations for a rate increase at the next policy meeting have been on the rise since Chair Janet Yellen indicated Feb. 14 that she foresees additional tightening this year regardless of whether President Donald Trump follows through on plans to pursue a pro-growth fiscal policy.
All three major US equity indices finished at new records for the seventh time in eight sessions, as enthusiasm for President Donald Trump’s economic plan added to gains.
Frankfurt and Paris also finished the day with solid gains after a closely-watched report rated January economic growth in Europe at the fastest pace in six years.
The “grind higher in equity markets continues with stunning consistency,” said Jasper Lawler, an analyst with London Capital Group.
“Everybody knows there has to be a big shake-out sometime but the momentum is still firmly higher.”
But HSBC’s disappointing fourth-quarter performance pushed London into negative territory as the bank’s shares tumbled by more than six percent. Financials Barclays, Standard Chartered and Lloyds joined the downward trend.
Without HSBC’s share price fall, the FTSE would have reached new highs for this month, analysts said.
“Banks are today’s index millstone,” said Michael van Dulken, head of research at Accendo Markets in London.
Asian markets mostly rose, with Tokyo boosted by a jump in the dollar against the yen amid intensifying talk that the Federal Reserve could lift interest rates as soon as next month.
But Hong Kong, where HSBC shares also are listed, suffered from what Van Dulken called a “whopping” profit drop.
The reason HSBC gave for its earnings decline sent new shivers through markets already spooked by uncertainty over political stability in Europe, Brexit and US trade policies.
“We highlight the threat of populism impacting policy choices in upcoming European elections, possible protectionist measures from the new US administration impacting global trade, uncertainties facing the UK and the EU as they enter Brexit negotiations,” group chairman Douglas Flint said in a statement.
n the US, retailers were given a boost by better-than-expected results from Wal-Mart Stores and Home Depot. Petroleum-linked shares were also strong on higher oil prices.
But a big impetus for the soaring market remains Trump and expectations he will imminently unveil details of a major tax cut plan, perhaps at his February 28 State of the Union address. With Bloomberg, AFP