The stock market rebounded Friday on bargain-hunting, led by select blue chips and some speculative issues.
The Philippine Stock Exchange Index rose 97.49 points, or 1.4 percent, to 7,064.33 on a value turnover of nearly P5 billion. Losers, however, beat gainers, 99 to 80, with 56 issues unchanged.
SM Investments Corp. of retail tycoon Henry Sy Sr. gained 4.1 percent to P895, while conglomerate Ayala Corp. climbed 3.4 percent to P920.
ISM Communications Corp. of businessman Dennis Uy advanced 7.5 percent to P3.45. Uy is transforming ISM into a holding company to be called Udenna Holdings Corp. through a share swap deal.
ISM earlier said in a disclosure to the stock exchange its board approved the change in the company’s corporate name to Udenna Holdings Corp. and an increase in the capital stock to P75 billion from P2.8 billion.
IRC Properties Inc., which plans to build a subway project in Makati, rose 7.1 percent to P2.85.
But the rest Asian markets fell Friday as trade tensions and geopolitical worries kept investors from tracking a rebound on Wall Street, with observers warning of further volatility to come.
The losses came at the end of a punishing week that witnessed steep losses across the board, with several indexes wiping out their year’s gains as the tech and energy sectors took a beating.
New York’s three main indexes provided some solace by posting healthy gains thanks to some upbeat earnings but they are still down from last Friday’s close with a feeling the bottom has not been found yet.
But analysts said there is a concern that even US markets have succumbed to the hefty selling pressure, having managed to ride out much of the volatility this year thanks to the strengthening domestic economy.
Dealers there are now feeling the pinch from the China-US trade row and rising interest rates.
“Unlike the previous sell-off in 2018 that tended to hit a sector or two at a time, the breadth of the latest rout (is) much more pronounced as it is heavyweight champions of the US markets that are leading the way,” said Stephen Innes, head of Asia-Pacific trade at OANDA.
“Indeed, this sell-off is entirely different as on top of the mountains of geopolitical risk, US interest rates are rising quickly and mercilessly squeezing financial conditions.”
He added that “everyone expects 2019 to be a real stinker”.
And Con Michalakis, chief investment officer at Statewide Super, told Bloomberg TV: “You’re going to see a lot more volatility. It’s going to be a feature of this environment.”
Hong Kong fell 1.1 percent while Tokyo ended 0.4 percent lower and Shanghai 0.2 percent.
Singapore dived 1.4 percent and Seoul shed 1.8 percent, Taipei eased 0.3 percent and Bangkok skidded 0.5 percent.
However, Wellington was marginally higher.
Energy firms failed to hold early gains, ending mixed and remaining under pressure as oil prices continue to retreat from their four-year highs seen at the start of the month.
The fall in prices comes as global demand dips, while data showed US stockpiles had grown and tensions with Saudi Arabia simmering over the death of a journalist. With AFP