Market rallies; Now, POPI advance
The stock market rose Tuesday tracking another rally in New York after last week’s battering, but early gains were tempered and Tokyo ended down on lingering uncertainty and worries about further turmoil.
The Philippine Stock Exchange Index climbed 82.23 points, or 1 percent, to 8,570.14 on a value turnover of P7.7 billion. Losers, however, beat gainers, 110 to 96, with 48 issues unchanged.
Now Corp., which is bidding to become the third telecommunications company, jumped 29.9 percent to P10.26, while Prime Orion Philippines Inc., controlled by major property developer Ayala Land Inc., advanced 3.6 percent to P3.52.
SM Prime Holdings Inc. of retail tycoon Henry Sy gained 3.3 percent to P36.15, while Bank of the Philippine Islands, the third-biggest lender in terms of assets, added 2 percent to P120.
Most Asian markets also rose Tuesday. While some stability has returned to trading floors, investors are keeping a nervous eye on the release this week of key US inflation data, which many fear could spark another round of blood-letting.
Global markets have been sent into spasms this month as the yield on US Treasury bills has risen to four-year highs, with Federal Reserve interest rates expected to be hiked further this year owing to a purring economy and rising wages.
There are also warnings that the yield on US T-bills could spike to 3.5 percent, according to Bloomberg News, which would mark a level not seen since 2010.
But Asian traders were broadly optimistic on Tuesday, though they pared morning gains.
Hong Kong stocks ended more than one percent higher on Tuesday after a positive lead from Wall Street, making a small dent in the hefty losses suffered over the past week.
The Hang Seng Index climbed 1.29 percent, or 379.90 points, to close at 29,839.53.
The benchmark Shanghai Composite Index rose 0.98 percent, or 30.83 points, to 3,184.96. The Shenzhen Composite Index, which tracks stocks on China’s second exchange, climbed 0.41 percent or 7.10 points to 1,730.83.
Sydney climbed 0.6 percent, Singapore jumped more than one percent and Seoul was up 0.4 percent.
Jakarta, Bangkok and Wellington were also well up.
Dealers were given a positive cue from Wall Street and Europe, where all major indexes finished more than one percent higher.
Stephen Innes, head of Asia-Pacific trading at OANDA, said: “Equity markets have begun the week on a somewhat positive note picking up from Friday’s rebound as bargain hunters have returned on the first sign of stability.
“The market is trying to find a positive equilibrium, and if we can get through this week’s critical US (inflation data) relatively unscathed, then it would most certainly look as if last week was little more than a corrective episode rather than the commencement of a bear market.”
However, there is concern that another strong reading could spark more frenzied selling.
And Ronald Wan, chief executive at Partners Capital in Hong Kong, told Bloomberg News the recent record highs witnessed in many cities would not be seen again for a while. With AFP