Stocks rise slightly; Meralco climbs
The stock market rose slightly Thursday near its record high Monday as stocks start to consolidate above the 8,500-point level.
The Philippine Stock Exchange Index gained 11.33 points, or 0.1 percent, to 8,519.82 on a value turnover of P9.3 billion. The benchmark index closed at a record high of 8,523.07 Monday. Losers beat gainers, 114 to 89, with 37 issues unchanged.
Manila Electric Co., the biggest retailer of electricity, added 0.5 percent to P297, while Bloomberry Resorts Corp., which operates Solaire Resorts & Casino on a reclaimed land in Manila Bay, advanced 3 percent to P10.80. Bloomberry expects 2017 to be a banner year after registering a 275-percent increase in net income in the first nine months of the year to P5.96 billion.
Sm Prime Holdings Inc., the largest integrated property company, climbed 1.2 percent to P37.97, while Globe Telecom Inc., the second-biggest telecommunications firm, rose 1.5 percent to P2,050.
Japanese stocks, meanwhile, ended the day in the red as it suffered a sharp reverse in afternoon trade after hitting fresh 26-year highs, with most other Asian markets also falling.
The Nikkei had plowed two percent higher in the first session, supported by broad optimism in the global economy and healthy corporate results that have helped fuel a run across global equities.
However, analysts said investors had decided the rally was running a little too hot—Tokyo has piled on more than 20 percent since early September—and turned sellers in the afternoon.
The index closed down 0.2 percent, having fallen as much as 1.7 percent at one point in afternoon trade.
Seoul also ended down, losing 0.1 percent, Singapore shed the same amount in the afternoon, while Wellington, Taipei, Bangkok and Jakarta were all lower.
However, Shanghai closed 0.4 percent higher while Hong Kong was 0.8 percent up, with traders cheering forecast-beating inflation figures from China that provided fresh hopes the huge economy is stabilizing.
Sydney was up 0.6 percent.
The dollar also suffered an afternoon retreat after holding up against its major peers.
Dealers were keeping tabs on Trump’s tax plans as Senate and House Republicans remain at odds over some issues including when cuts should be introduced and the target for the national deficit increase.
“We are seeing parts of the package jettisoned already and overnight House Speaker Paul Ryan seemed to offer an olive branch to the Senate’s version of the plan which appears to call for a delay in the implementation phase,” McKenna said.
However, Shane Chanel, equities and derivatives adviser at ASR Wealth Advisers, cautioned: “I fear that in a desperate bid to have this pushed through, there could be risks that the policy changes (are) watered down further as a compromise for this (being) implemented immediately. With AFP