Stock surge; JG Summit up
The stock market surged Thursday as investors picked up select blue chips to push the benchmark index safely above the 8,000-point mark.
The Philippine Stock Exchange Index climbed 91.03 points, or 1.1 percent, 8,144.91 on a value turnover of P8.5 billion. Gainers beat losers, 111 to 85, with 62 issues unchanged.
Conglomerate JG Summit Holdings Inc. of industrialist John Gokongwei advanced 4.8 percent to P76, while Filinvest Land Inc., the property unit of the Gotianun Group, rose 4.2 percent to P1.97.
GT Capital Holdings Inc. of tycoon George Ty gained 3.4 percent to P1,199, while SM Prime Holdings Inc. of tycoon Henry Sy Sr. climbed 3 percent to P34.50.
The dollar, meanwhile, built on its recovery against the yen Thursday on rekindled hopes for Donald Trump’s tax plan but most Asian markets retreated on profit-taking following gains earlier in the week.
Equity markets were unable to maintain momentum as investors took profits from a healthy start to the week that came on the back of relief that North Korea tensions had eased and Hurricane Irma had not been as devastating to Florida as feared.
Tokyo’s Nikkei fell 0.3 percent after climbing for three straight days as the softening yen was unable to fend off profit-takers.
Hong Kong slipped 0.4 percent and Shanghai pared early gains to end down 0.4 percent after a disappointing print on Chinese factory production, retail sales and state investment.
Sydney lost 0.1 percent and Singapore eased 0.4 percent but Seoul jumped 0.7 percent on a weaker won. Wellington eased but Jakarta and Taipei were higher.
Wall Street provided another positive lead with a second-straight record for all three main indexes after Republicans set a September 25 target for releasing a plan to slash taxes while surging oil prices boosted energy firms.
The announcement out of Washington fanned optimism Trump’s market-friendly agenda to boost the economy could see the light of day.
World markets soared for months after Trump’s November election win on hopes for such reforms but his struggles to push through any major legislation since taking office, as well as a series of controversies, have forced him to put his plans on the back-burner.
“Nothing concrete has been announced, but there is a growing feeling that something will be done amid Trump’s bipartisan approach along with the need for Republicans to score some runs ahead of next year’s election,” Rodrigo Catril, currency strategist at National Australia Bank, said in a commentary.
Investors were last week surprised when the tycoon reached a deal with Democrats to raise the US debt limit and avert a government shutdown, fanning hopes he can strike further agreements in future.
The greenback bounced back above 110 yen, having fallen last week to a 10-month low around 107.30 yen on worries about North Korea’s missile and nuclear tests.
In Asian trade the dollar extended gains against the Japanese unit, while it was also building on a rally against the euro.
The single currency was stuck below $1.19 Thursday, having flirted with $1.21 just a week ago. With AFP