Market climbs; RLC, Chelsea up

Stocks climbed Monday, in line with the movement of Asian markets on upbeat Japanese data and as hurricane Irma struck Florida with less force than once feared.

The Philippine Stock Exchange index, the 30-company benchmark, rose 26 points, or 0.3 percent, to close at 8,049.31, as four of the six major sectors advanced.

The heavier index, representing all shares, also gained 15 points, or 0.3 percent, to settle at 4,778.61, on a value turnover of P6.1 billion.

Gainers outnumbered losers, 110 to 87, while 50 issues were unchanged.

Seventeen of the 20 most active stocks ended in the green, led by oil and gas company PXP Energy Corp. which jumped 5 percent to P5.30 and developer Robinsons Land Corp. which climbed 2.4 percent to P23.90.

Chelsea Logistics Holdings Corp. of Davao City-based businessman Dennis Uy went up 2.1 percent to P10.78 while gaming company Bloomberry Resorts Corp. advanced 2.1 percent to P11.90.

Meanwhile, other Asian markets also traded higher Monday, with the North Korea crisis in focus as the US seeks to convince the UN Security Council to punish Pyongyang with tougher sanctions.

Asian stocks rose along with US equity futures and the dollar rebounded from its lowest in more than two years, after hurricane Irma struck the US with less force than once feared, paring estimates for economic damage.

Japan’s Topix index was headed for its biggest gain in more than three months as a weaker yen gave a boost to exporters. S&P 500 Index futures jumped 0.5 percent and European equity contracts advanced while Treasuries fell, after Irma, the second devastating storm of the season, didn’t reach the feared Category 5 and looks to have spared Miami. 

Oil advanced as Gulf Coast refining capacity continued to recover after getting hit by Harvey. Risk appetite was also fanned by North Korea refraining from an expected missile test at the weekend.

“Investors were quite nervous last week over a possible North Korea missile launch or other incidents of that sort, but with the weekend behind us, it’s relief for now,” said Masahiro Ichikawa, a senior strategist at Sumitomo Mitsui Asset Management Co. in Tokyo. “It doesn’t feel like things are getting worse, although a bit of caution is still needed with market’s focus likely on the outcome of UN Security Council’s vote.”

Hong Kong stocks closed sharply higher, in line with broad gains across Asia as concerns over the North Korean crisis waned and China released better-than-forecast inflation data at the weekend.

The Hang Seng Index climbed 1.04 percent, or 286.66 points, to close at 27,955.13.

The benchmark Shanghai Composite Index added 0.33 percent, or 11.18 points, to 3,376.42 and the Shenzhen Composite Index, which tracks stocks on China’s second exchange, jumped 0.80 percent, or 15.86 points, to 1,991.73.

Tokyo stocks rallied on upbeat Japanese data and a weaker yen. The benchmark Nikkei 225 index closed up 1.41 percent, or 270.95 points, at 19,545.77, while the broader Topix index ended the session up 1.17 percent, or 18.72 points, at 1,612.26

Traders breathed a sigh of relief that Pyongyang did not fire another missile on Saturday, choosing instead to mark its foundation day with a parade.

“Investors who had sold equities on wariness over a possible missile launch from North Korea are unwinding their positions for now,” Hiroyasu Iida, head of the investment research center at Aizawa Securities, told Bloomberg News.

Now, all eyes are on the UN Security Council where Washington is pushing for a vote Monday on fresh punitive measures against Pyongyang following its sixth nuclear test, despite resistance from China and Russia. With AFP, Bloomberg

Topics: Stocks
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