The stock market rose for the third straight day Friday, lifted by the decision of the Bangko Sentral ng Pilipinas to keep the benchmark policy rates steady at 4.5 percent amid the benign inflation environment.
The Philippine Stock Exchange Index gained 33.05 points, or 0.4 percent, to 8,055.47 on a value turnover of P9.4 billion. Gainers beat losers, 109 to 86, with 49 issues unchanged.
Conglomerate JG Summit Holdings Inc. of industrialist John Gokongwei advanced 4.1 percent to P66.60, while Security Bank Corp., the sixth-biggest lender in terms of assets, climbed 3 percent to P170.
Megaworld Corp., the largest lessor of office spaces, rose 2.9 percent to P6.07, while PLDT Inc., the biggest telecommunications firm, added 2.3 percent to P1,280.
Oil prices, meanwhile, ticked lower Friday following the previous day’s surge fueled by tensions between the United States and Iran, while Asian equities turned negative as investors took their foot off the pedal following a recent rally.
Fears of a conflict in the crude-rich Middle East ratcheted up Thursday when Tehran said it had shot down a US “spy drone” that was violating its airspace, which Washington denied.
US President Donald Trump described the move as a “big mistake,” adding: “This country will not stand for it.”
The news—which comes a week after the US accused Iran of attacking two tankers in the Gulf of Oman—sent oil prices soaring more than six percent Thursday, while talk has increased of a military stand-off that could deal a massive blow to supplies.
However, after an initial gain the commodity edged down slightly Friday as traders took heart from comments from Trump later, saying he thought it “hard to believe it was intentional,” adding “I think that it could have been somebody who was loose and stupid that did it.”
The president’s mixed message left the world unsure what Washington’s next move would be but observers said the cost of crude could continue to rise.
“If we meld supply risk fear, a powerfully bullish narrative, (the Federal Reserve’s) willingness to execute a pro-cyclical rate cut juicing risk assets and frame it with the potentially game-changing G20, you have the makings of a solid base for oil to shoot even higher,” said Stephen Innes, managing partner at Vanguard Markets.
Hong Kong dipped 0.3 percent, while Tokyo ended one percent lower and Sydney shed 0.6 percent. Seoul dropped 0.3 percent while Singapore was off 0.1 percent, with Mumbai and Jakarta also down.
But Shanghai gained 0.5 percent, Taipei added 0.4 percent, and Wellington put on 0.4 percent.
The focus is also on next week’s planned meeting between Trump and his Chinese counterpart Xi Jinping on the sidelines of the G20 in Japan next week.
Trump’s tweet about “a very good telephone conversation” between the pair this week fueled a surge across global markets on hopes for a deal to end their countries’ long-running trade war that has impacted the world economy.
However, Asia took a step back Friday, having been given an extra boost by the Fed indicating it will begin to cut interest rates soon, and other central banks erring towards softer monetary policies. With AFP