Stocks rise; second-liners advance
The stock market rose Monday in thin trading in step with the most of Asia, with second-liners providing a lift.
The Philippine Stock Exchange Index added 30.56 points, or 0.4 percent, to 7,771.30 on a value turnover of P4 billion. Gainers beat losers, 103 to 84, with 49 issues unchanged.
Conglomerate JG Summit Holdings Inc. of industrialist John Gokongwei advanced 2.8 percent to P61, while International Container Terminal Services Inc., the biggest port operator, rose 1.8 percent to P88.50.
Chelsea Logistics Corp. of businessman Dennis Uy surged 5.9 percent to P8.07, while Semirara Mining and Power Corp. of the Consunji Group, the biggest coal miner, climbed 4.7 percent to P31.40.
The rest of Asian markets mostly rose Monday as traders brushed off the chaotic Group of Seven meeting, with investors looking ahead to Donald Trump’s summit with North Korean leader Kim Jong Un and key central bank decisions.
Trump pulled out of endorsing a joint communique after the G7 meet finished on Saturday in a row over trade, accusing the summit’s chairman, Canadian Prime Minister Justin Trudeau, of dishonesty.
The shock decision followed a testy gathering in Quebec, where the US president came under fire for his “America First” protectionist drive that has fueled fears of a global trade war.
He had left early for Singapore, only to take exception to comments by Trudeau at a news conference.
“One thing that we do know for sure is the president’s uncontrollable need to defend his status is more apparent than any strategy when (it) comes to bilateral trade negotiations,” said Stephen Innes, head of Asia-Pacific trade at OANDA.
“But the far from harmonious Quebec summit confirmed deep-seated... expanding policy fissures on a plethora of significant concerns including climate change, the Iran nuclear deal and, of course, trade,” he added.
“While expectations were not exactly high going into the meeting, the result was a bit worse than even the markets’ dismal presuppositions.”
Despite the weekend’s problematic meeting, Tokyo ended 0.5 percent up, Hong Kong added 0.5 percent and Seoul gained 0.8 percent.
Singapore and Wellington also rose, while Taipei was flat. Shanghai, however, ended 0.5 percent down.
Sydney was closed for a public holiday.
All eyes are now on Singapore, with the leaders of North Korea and the United States due to meet for the first time in history, with Pyongyang’s nuclear program top of the agenda.
Tai Hui, JP Morgan Asset Management chief market strategist for Asia-Pacific, said in a note: “Although the... summit in Singapore is capturing public attention, the direct impact on markets is likely to be limited.”
“Ongoing dialogue between Washington and Pyongyang is positive since this implies military action is on hold, limiting any economic implication for South Korea and surrounding region. Investors will hope to see steady progress with opportunities for more discussion in coming months.”