Stocks rebounded Tuesday to end a four-day slump, as investors looked for bargains and after the government released positive data on investments and exports.
The Philippine Stock Exchange index, the 30-company benchmark, climbed 102 points, or 1.4 percent, to close at 7,451.08, as four of the six major sectors advanced.
The heavier index, representing all shares, also rose 37 points, or 0.8 percent, to settle at 4,478.73, on a value turnover of P4.7 billion. Gainers outnumbered losers, 106 to 75, while 53 issues were unchanged.
Data from the Philippine Statistics Authority showed that merchandise exports increased 3.3 percent in October. The Bangko Sentral ng Pilipinas also reported that foreign direct investments hit $8 billion in the first three quarters.
Thirteen of the 20 most active stocks ended in the green, led by ISM Communications Corp. which jumped 8.4 percent to P6.22 and developer Ayala Land Inc. which gained 4.2 percent to P42.
Meanwhile, Asian equities were mixed Tuesday as investor attempts to track gains in New York are weighed by a perfect storm of issues that have hammered global markets, while the pound remained stuck around 20-month lows on Brexit uncertainty.
Bargain-buyers tried to step in after the latest sell-off but were unable to gain traction, with fears about the outlook for the global economy keeping sentiment beaten down.
The China-US trade row, signs of softness in both countries’ economies, the Huawei arrest, Brexit, demonstrations in France and tanking oil prices are among the problems facing investors, and analysts warned of more volatility to come.
Adding to those problems is upheaval in India—another crucial economy—where the head of the central Reserve Bank of India has resigned following a row with Prime Minister Narendra Modi’s administration over alleged government interference.
Monday’s development sent the rupee, which was already Asia’s worst-performing currency, tumbling more than one percent Tuesday, with speculation the RBI had intervened to pare the losses. The Mumbai stock market initially fell a similar amount before bouncing back.
Global risk sentiment “is facing a towering wall of worry as virtually every major economy in the world is slowing, suggesting the synchronised global slowdown is accelerating at a much faster pace than thought,” said Stephen Innes, head of Asia-Pacific trade at OANDA.
In Asian trade Hong Kong rose 0.2 percent and Shanghai gained 0.4 percent but Tokyo shed 0.3 percent.
Singapore slipped 0.3 percent, Seoul was marginally lower and Sydney rose 0.4 percent. Bangkok and Jakarta slipped, while Wellington, Manila and Taipei were up.
On currency markets the pound was stuck around levels last seen in April 2017, having dived 1.6 percent Monday in reaction to Prime Minister Theresa May’s decision to delay Tuesday’s parliamentary vote on her Brexit deal.
May recognised the agreement would be voted down and promised to get clarity from Brussels on the key issue of Northern Ireland, but the decision ramped up uncertainty and fuelled fresh questions about her political future.
Adding to the problems, the PM did not provide a timetable for a new vote.
“The market is concerned that the postponement uses up valuable time before the 29th March exit date, and the risk of a no-deal scenario is growing” said National Australia Bank economist David de Garis.
On an upbeat note, Beijing’s economics point man Vice Premier Liu He spoke with US officials to flesh out a timetable for talks to resolve their trade row, following this month’s G20 truce hammered out between Donald Trump and Xi Jinping. With AFP