The stock market advanced Thursday, nearly touching the 9,000-point market again, as investors shrugged off the weak dollar and a more belligerent US trade policy.
The Philippine Stock Exchange Index climbed 78.94 points, or 0.9 percent, to an all-time high of 8,999.17 on a value turnover of P8.9 billion. Gainers beat losers, 116 to 105, with 41 issues unchanged.
Casino operator Bloomberry Resorts Corp. jumped 8.1 percent to P12.82, while Jollibee Foods Corp., the biggest fastfood chain, rose 3.9 percent to P293.
Robinsons Land Corp. of industrialist John Gokongwei gained 3.9 percent to P21.60, while Now Corp., controlled by the Velarde family, surged 5.5 percent to P5.60. Now has expressed interest to bid for the third telecommunications slot to challenge the duopoly PLDT Inc. and Globe Telecom Inc.
“Definitely, we will participate. That’s for sure,” Kristian Pura, head of business development of Now, told reporters Wednesday at the sidelines of the preliminary conference and consultation for selecting a new major telecommunications player.
The dollar, meanwhile, took another beating on Thursday after two of Donald Trump’s top cabinet members talked down the currency and hinted at a more belligerent trade policy.
The sell-off in the greenback especially hit exporters on Japan’s Nikkei index, which tumbled for a second straight day, although dollar-priced oil and gold extended gains.
Japan’s benchmark Nikkei 225 ended 1.1 percent lower, having fallen 0.8 percent Wednesday from a 26-year high.
Hong Kong fell almost one percent, with profit-taking adding to the selling pressure after the Hang Seng Index chalked up a succession of records since last week.
Shanghai ended down 0.3 percent, while Sydney fell 0.1 percent and Singapore eased 0.9 percent. Jakarta, Kuala Lumpur and Bangkok also dropped.
However, the strong growth data helped Seoul rise one percent while Taipei, Wellington and Mumbai were also up.
US Treasury Secretary Steven Mnuchin, speaking at the Davos gathering of the political and business elite, said: “Obviously a weaker dollar is good for us, it’s good because it has to do with trade and opportunities.”
His comments sent the US unit, which was already under pressure, tumbling with analysts suggesting it could be a part of the Trump administration’s America First policy to help its own exporters.
They came days after the US announced stinging tariffs on imports of solar panels and large washing machines, angering China and South Korea.
US Commerce Secretary Wilbur Ross defended those tariffs and warned Washington would be prepared to fight back in future against countries it felt had flouted the rules.
The developments ramped up fears of a global trade standoff and worries about their impact on the world economy, which is finally moving on track a decade after the financial crisis.
“To the extent that trade is disrupted, it’s probably not good for economies, for US companies and corporations, and would probably put pressure on the rising stock market,” Michael Cuggino, president and portfolio manager at the Permanent Portfolio Family of Funds in San Francisco, told Bloomberg News. With AFP