The stock market rose Monday in step with the rest of the region, with Wall Street once again providing a strong lead on the back of optimism about corporate earnings in light of Donald Trump’s tax cuts as well as the improving global economic outlook.
The Philippine Stock Exchange Index gained 43.10 points, or 0.5 percent, to 8,857.72 on a value turnover of P5.6 billion. Losers, however, beat gainers, 109 to 99, with 52 issues unchanged.
Jollibee Foods Corp., the biggest fastfood chain, advanced 3.4 percent to P263.80, while Shakey’s Pizza Asia Ventures Inc. jumped 8.8 percent to P15.30.
Megawide Construction Corp. climbed 3.1 percent to P18.50. State-pension fund Social Security System last week said it planned to form a joint venture with Megawide that will bid for the redevelopment of the Ninoy Aquino International Airport.
MacroAsia Corp., a leading provider of aviation-related services, tumbled 5.8 percent to P21.30 on profit-taking, while Megaworld Corp., the largest lessor of office spaces, fell 4.3 percent to P4.88.
Asian traders, meanwhile, continued their blistering start to the year on Monday with most markets rising, while the euro extended its gains against the dollar.
Hong Kong stocks finally ended with a loss on Monday after a record run of 14 straight gains that had put the benchmark Hang Seng Index on course to hit its record high.
The HSI fell 0.23 percent, or 73.67 points, to close at 31,338.87. The benchmark Shanghai Composite Index lost 0.54 percent, or 18.45 points, to 3,410.49 after an 11-day run of gains.
The Hang Seng Index has climbed more than seven percent in its record run, supported by the broad global advance as well as a surge in mainland investors attracted by relatively cheaper valuations compared with Shanghai and Shenzhen.
Among other markets Tokyo ended 0.3 percent higher despite a stronger yen, with market heavyweight Softbank more than three percent higher on reports it could list its mobile unit, raising up to $18 billion in one of Japan’s biggest public offerings.
Sydney gained 0.1 percent, while Seoul and Singapore were each up 0.3 percent. Taipei and Bangkok were higher though Wellington dipped slightly.
Jakarta was up 0.1 percent in the afternoon, despite a floor collapsing in the lobby of the building where it is based, injuring a number of people.
Local TV stations earlier reported that trade had been suspended for an hour but stock exchange spokesman Rheza Andhika said trade continued as usual in the afternoon.
“Investors continue basking in the afterglow of US tax reform assuming there will be no end to this unstoppable run, which is now feeding off US domestic economic strength and a stronger global growth narrative,” said Stephen Innes, head of Asia-Pacific trading at OANDA.
“As we enter earnings season, the fear of missing out mindset takes hold, but if the markets remain at this pace, we could breach my 2018 year-end global stock market forecast before the end of February, which will for once leave me honestly lost for words.”