The stock market rose Tuesday on bargain-hunting in another cautious trading session after the World Bank reduced the 2019 growth forecast for the Philippines to 6.4 percent from the previous estimate of 6.5 percent.
The Philippine Stock Exchange Index added 38.90 points, or 0.5 percent, to 7,879.21 on a value turnover of P4.8 billion. Losers, however, beat gainers, 103 to 91, with 46 issues unchanged.
The World Bank on Monday revised its growth forecast for the Philippines, taking into account the impact of the delay in the national budget approval, the slowdown in global trade and the El Niño dry spell. It also revised downward the 2020 growth projection for the Philippines to 6.5 percent from 6.6 percent.
PLDT Inc., the biggest telecommunications firm, rallied 2.3 percent to P1,130, while Robinsons Retail Holdings Inc. of the Gokongwei Group gained 1.4 percent to 80.10.
SM Investments Corp. of the Sy Group rose 1.7 percent to P941, but GT Capital Holdings Inc. of the Ty Group fell 2.7 percent to P890.
The rest of Asian markets, meanwhile, mostly rose Tuesday but gains were tempered by profit-taking after a recent rally, though investors remain optimistic over China-US trade talks and the prospect of no hike in borrowing costs.
A forecast-beating factory report out of Beijing—which spurred buying across the region Monday—was followed by a similarly positive US reading, tempering worries about the outlook for the world’s biggest and most crucial economies.
While stocks were predominantly in the green the early advances had fizzled by the afternoon.
Hong Kong edged up 0.1 percent in late trade while Tokyo finished marginally lower.
Shanghai closed up 0.2 percent after fluctuating through the day, Sydney ended 0.4 percent higher and Singapore rose 0.6 percent.
Seoul climbed 0.4 percent and Wellington jumped more than one percent, while Taipei, Mumbai, Jakarta and Bangkok were also well up.
Traders are now awaiting the start of the next round of top-level trade talks in Washington, with China and the US noting progress in a meeting last week in Beijing.
A series of olive branch measures from the Chinese side has lifted hopes the two will eventually reach a deal to end their tariffs row, which dragged on equities at the end of 2018.
This week also sees the release of US March jobs data, which are closely watched for an idea about the state of the economy, with the Federal Reserve also using the figures to map its path for monetary policy.
The Fed’s recent dovish lean has helped propel a rally across share markets this year, with other central banks also looking to ease up on their tightening moves.
“Having the central banks take a step back, with the Fed saying that they’re going to pause and that they’re going to be patient at least toward the end of this year, I think that gives the market a little bit of time” to wait for economic data to turn around, said Victoria Fernandez, chief market strategist at Crossmark Global Investments in Houston. With AFP