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Friday, March 29, 2024

Stocks jump; PLDT, RLC climb

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The stock market surged Friday on prospects of a stronger economy after global debt watcher Fitch Ratings affirmed the Philippines’ investment grade rating of “BBB” with a stable outlook.

The Philippine Stock Exchange Index jumped 133.47 points, or 1.7 percent, to 7,970.02 on a value turnover of P8.5 billion. Gainers beat losers, 105 to 72, with 52 issues unchanged.

Fitch said in a statement Friday the Philippine economy was poised to recover this year, growing by 6.1 percent and would likely negate the sluggish 5.6-percent expansion in the first quarter.

PLDT Inc., the biggest telecommunications company, advanced 5.5 percent to P1,350, while Robinsons Land Corp. of the Gokongwei Group climbed 5.7 percent to P26.

Filinvest Land Inc. of the Gotianun Group rose 4.3 percent to P1.71, while Aboitiz Power Corp. of the Aboitiz Group gained 3.4 percent to P36.50.

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The rest of Asian stocks edged down Friday, despite modest gains on Wall Street overnight, as US President Donald Trump’s sudden announcement of tariffs on all Mexican imports saw Tokyo shares drop.

Trump’s Twitter announcement of a five-percent tariff on all goods from Mexico starting June 10 sent shares in automakers with plants in the North American country falling sharply.

Trump said the duties would gradually increase until “illegal migrants” stop coming into the United States through Mexico.

Mexico’s under-secretary for North American affairs called the move “disastrous” and vowed to retaliate.

The announcement saw shares in Japanese automakers plunge in early trade, with Honda dropping 4.26 percent to 2,651 yen, Mazda plummeting 7.13 percent to 1,061.5 yen, Nissan down 5.31 percent to 734.6 yen, and Toyota slipping 2.84 percent to 6,384 yen.

Tokyo’s main index fell 1.6 percent, while Hong Kong shed 0.8 percent. Shanghai edged down 0.2 percent and Singapore lost 0.8 percent. Sydney and Seoul managed a 0.1 percent gain.

Trump’s announcement has put the new North American trade pact between the US, Canada, and Mexico at risk—with the agreement still awaiting ratification by the legislatures of the three countries.

In a letter to Trump after the announcement, Mexican President Andres Manuel Lopez Obrador struck a conciliatory tone.

“I express to you that I don’t want confrontation,” he wrote. “I propose deepening our dialogue, to look for other alternatives to the migration problem.”

Coming amidst a protracted trade war between the United States and China, the announcement will do little to soothe investors’ anxieties.

“A US-China trade deal will be even less likely,” said Khoon Goh, head of research at Australia & New Zealand Banking Group Ltd. in Singapore.  

“At the end of the day, what’s the point of doing a deal if the US can just impose tariffs arbitrarily?”

In recent days China and the US have ramped up their rhetoric, with Beijing accusing Washington of “naked economic terrorism” and Trump dismissing the Asian superpower as “a very weakened nation.” With AFP

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