The stock market rose Thursday on positive corporate earnings reports for 2018 and the upbeat forecast of the International Monetary Fund on the Philippine economy.
The Philippine Stock Exchange Index climbed 60.45 points, or 0.8 percent, to 7,881.79 on a value turnover of P5.8 billion. Gainers beat losers, 115 to 84, with 47 issues unchanged.
The IMF said it expects the Philippine economy to grow faster than 6.2 percent this year, on the back of robust domestic demand and slower inflation rate.
Conglomerate San Miguel Corp. advanced 4.6 percent to P176.80, while Metropolitan Bank & Trust Co., the second-biggest lender in terms of assets, gained 4.2 percent to P79.80.
First Gen Corp. of the Lopez Group rose 3.2 percent to P22.50. The Department of Energy issued to a unit of First Gen the notice to proceed with the construction of a proposed $1-billion liquefied natural gas project in Batangas province in partnership with Tokyo Gas Co. Ltd.
Megaworld Corp., the largest lessor of office spaces, climbed 2.9 percent to P5.41.
The rest of Asian markets stuttered Thursday with no fresh news on the China-US trade front and as investors turn their attention to further signs of weakness in the global economy.
A worldwide growth forecast downgrade from the Organization for Economic Cooperation and Development and weaker-than-expected private US jobs data helped send Wall Street lower and dragged on Asian sentiment.
And observers said a surge in the US trade deficit could also spur US President Donald Trump to ratchet up his protectionist agenda, even as he zeroes in on an agreement with China.
“Whether this hardens the president’s attitude (for a deal in) the China trade talks or he chooses a quick win is hard to say,” said Jeffrey Halley, senior market analyst at OANDA.
“But with an election to fight next year, you can almost hear the clanking as the White House swings its heavy artillery in the direction of the other perceived trading bloc culprits.”
Halley suggested the tycoon will turn his focus on Japan—with whom talks are ongoing—and the European Union.
“One thing is for sure, long after the US-China trade deal is put to bed, we will not have heard the last of the word tariff in 2019,” he added.
Shanghai rose 0.1 percent, extending a bright start to the year that has seen the composite index jump about a quarter. Tokyo ended 0.7 percent lower while Hong Kong dipped 0.6 percent in the afternoon.
But Sydney put on 0.3 percent, Singapore added 0.1 percent and Wellington rose 0.2 percent. Mumbai and Bangkok were slightly higher.
Traders are moving cautiously after the OECD’s 2019 forecast cut and disappointing private jobs numbers that bode ill for the release of closely watched government data on Friday.
“We’re seeing a slowdown in the economy, we’re seeing a slowdown in corporate earnings,” Oliver Pursche, chief market strategist at Bruderman Asset Management, told Bloomberg TV. With AFP