The stock market rose Wednesday on bargain hunting to end a four-day slump, as investors picked up select stocks that were oversold in previous sessions.
The Philippine Stock Exchange Index added 13.14 points, or 0.2 percent, to 7,540.92 on a value turnover of P5.1 billion. Gainers beat losers, 113 to 91, with 60 issues unchanged.
Globe Telecom Inc., the biggest telecommunications firm, advanced 3.2 percent to P1,920, while Metro Retail Stores Group Inc., the largest specialty store retailer, surged 5.1 percent to P2.90.
San Miguel Food and Beverage Inc. climbed 3.9 percent to P82.05, while parent San Miguel Corp. gained 3 percent to P146.20.
Meanwhile, stocks were weaker in most major Asian markets Wednesday, with Turkey’s financial crisis showing little sign of abating as Ankara hiked tariffs on several US goods in a tit-for-tat move.
Following a day of gains on Tuesday, investors were again in a bearish mood, driving down markets in Tokyo, Hong Kong and Shanghai, but the Turkish lira was spared the free-fall of recent sessions.
The main Japanese market, the Nikkei 225, erased early gains to close 0.68 percent down on the day, giving back some of the ground made on Tuesday when it jumped by more than two percent.
The Hang Seng in Hong Kong was off more than 1.5 percent and the losses were even deeper in Shanghai, which was in the red by more than two percent.
However, not all was doom and gloom in the Asian market, with Seoul’s Kospi and the main Australian market up around 0.5 percent.
The Turkish lira did not suffer the kind of dizzying drops seen in recent days but still experienced some frantic trading when Ankara announced a rise in tariffs for certain US imports.
Turkey’s vice president said the rises were ordered “within the framework of reciprocity in retaliation for the conscious attacks on our economy by the US administration,” as the war of words between the two Nato allies intensified.
Rodrigo Catril, senior foreign-exchange strategist at National Australia Bank, said the Turkey crisis was likely to go on for some time.
“It is hard not to see the lira remaining under pressure until we see a material fiscal restraint to cool down the economy, along with a measurable lift in rates by the central bank and a diplomatic resolution to US tensions,” said the analyst.
The Turkish unit had been under pressure for weeks over growing concerns about the health of the economy but the currency slumped on Friday and Monday, when US President Donald Trump announced Washington was ramping up aluminium and steel tariffs.
In late Asian trading, the lira was at 6.2050 against the dollar, having recovered significantly from the record lows of 7.24 seen on Monday.
Traders fretted that Turkey’s woes could spark contagion into other emerging currencies and also that banks in advanced nations could suffer due to exposure to the Turkish economy.
“While the lira is stabilizing, investors are still concerned that the crisis will spread to other emerging economies and currencies,” said Hikaru Sato, senior technical analyst at Daiwa Securities. With AFP