The stock market extended its rally Friday, boosted by a government report that the inflation rate in December eased further to a seven-month low of 5.1 percent from 6 percent in November.
The Philippine Stock Exchange Index rose 80.51 points, or 1 percent, to 7,761.11 on a value turnover of over P9 billion. Gainers overwhelmed losers, 141 to 63, with 39 issues unchanged.
The inflation rate dropped mainly because of the slower annual increases in the indices of food, non-alcoholic beverages and transport, the Philippine Statistics Authority said. It was the first time that the inflation rate dropped below six percent since 5.7 percent in July last year.
Jollibee Foods Corp., the biggest fast-food chain, advanced 5.8 percent to P309, while First Gen Corp. of the Lopez Group, climbed 5.2 percent to P21.35.
Puregold Price Club Inc. of retail tycoon Lucio Co gained 4.5 percent to P47.20, while conglomerate Ayala Corp. rose 3.8 percent to P960.
Most Asian markets also rose Friday, reversing early losses, though Tokyo tanked more than two percent while technology firms were hit further by Apple’s shock revenue warning.
Tokyo’s Nikkei 225 index, which was returning from a four-day break, ended 2.3 percent down, while Sydney shed 0.3 percent and Taipei lost more than one percent.
However, Shanghai finished more than two percent higher while Hong Kong was 1.8 percent up in late trade.
The broad gains helped end a torrid week on a positive note but traders remain on edge as they face a confluence of issues including the China-US trade war, China’s stuttering economy, the US government shutdown and Brexit.
Apple has been a major source of angst this week after it slashed its revenue forecasts blaming weak Chinese demand for its iPhones and citing the tariffs spat between Washington and Beijing.
The US tech titan plunged 10 percent Wednesday—wiping $75 billion off its value—in response to the announcement and analysts said the fact such a usually safe firm was feeling the pinch was a sign of deeper problems in the global economy.
Technology firms, particularly those linked to Apple, were among the worst hit in Asia Friday. In Tokyo supplier Kyocera fell 1.8 percent, Japan Display was 2.8 percent off and Sharp dived 4.3 percent, while Alps Alpine shed 6.2 percent.
Sony was 2.7 percent lower. There were also hefty losses for AAC Technologies in Hong Kong and Foxconn in Taipei, which had already been badly hit Thursday.
“Belief in global corporate earnings is fading against the backdrop of the US-China trade friction,” Nobuhiko Kuramochi, head of investment information at Mizuho Securities in Tokyo, told Bloomberg News.
“Deteriorating Apple earnings will lead to volume cuts for suppliers… while it could also mean cost-cutting pressures.”
Investors will be keeping tabs on developments in the China-US trade standoff with the two sides facing a March 1 deadline to hammer out a deal before Washington jacks up tariffs on a slew of Chinese goods. With AFP