Market rebounds; Bloomberry up
Stocks rebounded Thursday, as better-than-forecast trade figures in Japan boosted optimism in the global economy.
The Philippine Stock Exchange index, the 30-company benchmark, rose 40 points, or 0.5 percent, to close at 7,563.45, as four of the six major sectors advanced.
The heavier index, representing all shares, also gained 19 points, or 0.4 percent, to settle at 4,521.21, on a value turnover of P5.9 billion. Losers edged gainers, 96 to 94, while 43 issues were unchanged.
Thirteen of the 20 most active stocks ended in the green, led by casino operator Bloomberry Resorts Corp. which jumped 5 percent to P8.65 and developer Robinsons Land Corp. which climbed 3.6 perent to P25.95. Conglomerate JG Summit Holdings Inc. went up 3.3 percent to P82.
Meanwhile, Asian markets mostly rose Thursday following broad losses the previous two days but they struggled to maintain early momentum as analysts warned caution was prevailing on geopolitical worries and fading hopes for Donald Trump’s stimulus drive.
Energy firms were among the main laggards, tracking losses in their US counterparts, after a surprise jump in US petroleum inventories sent oil prices skidding almost four percent Wednesday.
Hong Kong added 0.4 percent in the afternoon, Sydney put on 0.3 percent by close, Seoul jumped 0.5 percent and Singapore 0.1 percent.
But Tokyo ended marginally lower, while Shanghai was also flat. Wellington and Taipei slipped.
Markets have been rattled in recent weeks by a series of events that upended the optimism that welcomed in the year.
Trump’s failure to push through key healthcare reform last month dealt a huge blow to his chances of passing the tax-cutting, big-spending plan that had helped fan a global rally since his election win in November.
That was followed by a US missile strike on Syria -- which hit US-Russian relations -- and the ongoing sabre-rattling by North Korea that has fuelled worries about nuclear conflict.
At the same time France and Germany are preparing for elections that could have big implications for the eurozone, and Britain’s shock decision to call a general election next month is also keeping dealers on edge.
And an uninspiring Federal Reserve report Wednesday on the US economy also failed to provide any lift.
“Geopolitical angst, a faltering US economy and the UK snap election are consuming investors mindsets,” said Stephen Innes, senior trader at OANDA.
“With so many uncertainties offering few incentives for investors to re-engage risk exposure, clearly there is little market bravado as dealers appear to be disposed to participate after the fact, rather than play the post-election knee-jerk.”
Crude enjoyed a slight recovery in Asia after the oil minister of Saudi Arabia suggested an output cut among major producers “might have to” be extended.
But investors kept away from big-name companies after the US energy agency announced the increase in petroleum stockpiles, which fuelled worries about demand as the country heads into the crucial holiday season when Americans take to the roads.
CNOOC fell 1.3 percent and PetroChina shed 1.1 percent in Hong Kong, while Sydney-listed Woodside Petroleum lost 1.2 percent and Inpex sank 1.3 percent in Tokyo. With Bloomberg AFP