The stock market rose slightly Tuesday on select buying, with investors kicking off window dressing activities before the close of the month.
The Philippine Stock Exchange Index added 15.76 points, or 0.2 percent, to 7,413.63 on a value turnover of P7.6 billion. Gainers beat losers, 98 to 76, with 58 issues unchanged.
Metropolitan Bank & Trust Co., the second-biggest lender in terms of assets, advanced 3.6 percent to P76.95, while parent GT Capital Holdings Inc. gained 1.4 percent to P879.50.
BDO Unibank Inc., the largest bank, climbed 1.7 percent to P130.20, while Robinsons Retail Holdings Inc. of the Gokongwei Group surged 6.8 percent to P76.95.
The rest of Asian markets mostly rose Tuesday but traders remain on edge after Donald Trump warned he will ramp up his trade war with China if he does not reach a deal with Xi Jinping at upcoming talks.
With the economic superpowers in the middle of an increasingly bitter standoff, there are hopes the two leaders will be able to work out an agreement that brings them back from the brink of a tariffs row that threatens to dent global growth.
In an interview with the Wall Street Journal published Monday, Trump said he thought it “highly unlikely” the US would hold off more than doubling duties on $250 billion of Chinese imports if there is no breakthrough.
“If we don’t make a deal, then I’m going to put the $267 billion additional on,” he told the newspaper, referring to the remainder of Chinese imports that so far have not been hit with tariffs.
“The only deal would be China has to open up their country to competition from the United States.”
While some observers suggested the comments were a typical Trump ploy to apply maximum pressure on Beijing heading into the meeting, there remain fears about what the tycoon has in mind.
“It doesn’t sound like we will see Donald the Deal Maker but instead Trump the Trade Warrior at G20,” said Stephen Innes, head of Asia-Pacific trade at OANDA.
Most regional markets extended Monday’s global rally, which was fueled by rising oil prices, Italy’s softer tone in its budget standoff with Brussels and Britain’s Brexit agreement with the European Union.
Tokyo ended 0.6 percent higher and Sydney rose one percent while Singapore added 0.1 percent.
Seoul piled on 0.8 percent, while Wellington and Taipei both edged up 0.1 percent.
But Hong Kong dipped 0.3 percent in the afternoon while Shanghai ended marginally down.
While the meeting is the main event this week, investors are also keeping an eye on speeches from top Federal Reserve officials including boss Jerome Powell, which could signal a softer pace of interest rate hikes.
Rising US borrowing costs—fueled by surging US growth—have been a major cause of concern for investors but recent comments from the central banker appear to show a more dovish outlook for 2019 as the global economy slows.
On oil markets both main contracts remained under pressure despite Monday’s jump, with market-watchers waiting for next month’s gathering of Opec and non-Opec members hoping they will announce a cut in output. With AFP