Stock market rises; Wellex jumps

The market rose Tuesday to snap a three-day slump, with investors picking up recently-battered issues and speculative stocks with promising prospects.

The Philippine Stock Exchange Index added 46.67 points, or 0.6 percent, to 7,233.29 on a value turnover of P5.1 billion.

Bank of the Philippine Islands, the third-biggest lender in terms of assets, climbed 2.2 percent to P91, while Metropolitan Bank & Trust Co., the second-largest bank, added 1.4 percent to P68.80.

Wellex Industries Inc. of the Gatchalian Group, jumped 21.9 percent to P0.39. The Gatchalian family may now pursue the planned development of its 17-hectare “Plastic City” estate in Valenzuela City in joint venture with Ayala Land Inc.

The possibility emerged after the rehabilitation case against Wellex Industries’ subsidiaries was terminated and the loans with Philippine National Bank settled.

PLDT Inc., the biggest telecommunications firm, gained 2.2 percent to P1,323.

The rest of Asian markets mostly rose on Tuesday following another strong lead from New York, as optimism about the US economy and the beginning of the earnings season provide a distraction from trade tensions.

After weeks of losses across the world, investors moved back in on Friday as the tit-for-tat tariffs between Beijing and Washington had already been factored in and attention shifted to US jobs and corporate results.

Wall Street’s three main indexes closed with more healthy gains Monday, building on a rally that has been given life by another forecast-busting US jobs report.

“For a change, all is quiet on the... trade war front as the drop in aggressive US tariff posturing and the (jobs data) after effects have propelled US equity markets to their third consecutive day of substantial gains,” said Stephen Innes, head of Asia-Pacific trading at OANDA.

“For the time being robust US economic data is offsetting concerns about rising trade tensions.”

However, he added a word of warning that “markets remain deceptively tricky and could be even more so as we enter the US dog days of summer.”

The positive sentiment and US economic optimism has lifted the dollar against the safe haven yen, helping Tokyo’s Nikkei end 0.7 percent higher.

Hong Kong put on 0.5 percent, Shanghai added 0.4 percent and Singapore one percent. Seoul gained 0.4 percent, Taipei edged 0.3 percent higher, while Jakarta was also well up.

Rodrigo Catril, senior strategist at National Australia Bank, said: “No new news from the US-Sino trade war has helped investors focus back on fundamentals and with the US earnings season starting later this week, the US has led the gains in equities overnight.”

The reporting season for April-June kicks off in the US this week and there are hopes another outstanding set of reports can put some fizz back into world markets.

Also on the radar this week is the release of Chinese trade data, which will be pored over for an idea about what impact the ongoing row with the US has had so far on the world’s number two economy. With AFP

Topics: Philippine Stock Exchange Index , Bank of the Philippine Islands , Metropolitan Bank & Trust Co. , Wellex Industries Inc.
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