The market rose for the fourth straight day Wednesday, led again by select blue chip issues as investors started accumulating stocks battered in last week’s trading.
The Philippine Stock Exchange Index advanced 93.51 points, or 1.2 percent, to 7,815.07 on a value turnover of P10.1 billion. Gainers beat losers, 112 to 78, with 43 issues unchanged.
Conglomerate Ayala Corp. rallied 6.5 percent to P905, while JG Summit Holdings Inc of industrialist John Gokongwei climbed 4.3 percent to P61.55.
Aboitiz Equity Ventures Inc. of the Aboitiz Group gained 4 percent to P51.80, while Megaworld Corp., the biggest lessor of office spaces, added 2.6 percent to P5.54.
The pound, meanwhile, sank to fresh four-month lows Wednesday after British MPs slammed Theresa May’s latest plan to pass her Brexit plan, increasing the chances of a no-deal divorce, while Asian markets rose as dealers await the latest China-US developments.
With Wall Street providing a positive lead, regional equities were mostly on the up but analysts warned traders were on edge and any unsavory headlines could precipitate another sell-off.
Hong Kong edged up 0.2 percent while Tokyo finished 0.1 percent higher with Sydney, Seoul, Singapore, Mumbai and Wellington also on the rise.
But Shanghai and Taipei turned negative.
The sterling rallied Tuesday after the prime minister unveiled her revised EU divorce deal that included a promise for lawmakers to set a confirmatory referendum on whatever version of Brexit they end up approving.
However, the currency fell as quickly as it had risen as opponents of the original agreement attacked it as nothing more than a rehash.
May called the new proposals this parliament’s “last chance” to end a political deadlock but with key MPs led by arch-Brexiters still unmoved, it is likely to fall flat for a fourth time.
Failure to get the deal through parliament will more than likely see May resign and possibly be replaced by a more hardline leader—most bets are on the controversial Boris Johnson—who would push for a no-deal exit, a scenario analysts warn could spell economic hardship.
“Politicians from all sides trashed her proposals, leaving the pound mired at four-month lows while the prime minister awaits her end of days,” said OANDA senior market analyst Jeffrey Halley.
“A settlement remains as distant as ever.”
The pound gave up early small gains against the dollar and resumed its downtrend to wallow around levels last seen in January.
Dealers are keeping a close eye on developments in the China-US trade tussle after the pair swapped tariff hikes and Donald Trump barred Chinese telecoms giant Huawei from the US market and put it on a sales blacklist.
A 90-day reprieve provided a semblance of hope that the row can be resolved and the two economic superpowers will hammer out a trade deal at some point.
But reports emerged that Trump is now considering banning Chinese surveillance camera makers from getting access to US components, in a similar move to that against to Huawei, which could further stoke tensions. With AFP