Share prices climbed Tuesday on prospects the Philippines may secure the most-coveted “A” rating from major credit rating agencies within the next 18 months.
The Philippine Stock Exchange Index rose 49.89 points, or 0.6 percent, to 8,093.60 on a value turnover of P5.9 billion. Gainers overwhelmed losers, 118 to 77, with 51 issues unchanged.
Bangko Sentral ng Pilipinas Deputy Governor Diwa Guinigundo who retired Monday said the government should work hard to address the issues earlier raised by credit rating agencies in order to achieve the higher debt grade.
Casino operator Bloomberry Resorts Corp. advanced 4.1 percent to P11.74, while Marcventures Mining and Development Corp. surged 22.1 percent to P1.27.
Alliance Global Group Inc. of tycoon Andrew Tan gained 2.8 percent to P15.86
after unveiling a P410-billion capital spending program for the period 2020 to 2024 to bankroll the expansion of core businesses.
JG Summit Holdings Inc. of industrialist John Gokongwei added 1.8 percent to P68.50.
The rest of Asian investors took a breather Tuesday as the previous day’s gains fueled by the resumption of China-US trade talks were offset by worries about the global economic outlook following the release of disappointing factory data.
Hong Kong stocks rallied more than two percent as dealers returned from a long weekend to play catch-up with the rest of the region, with overnight violent protests in the city appearing to have had little effect on sentiment.
Tokyo and Sydney each ended 0.1 percent higher, while Wellington was up 0.6 percent.
But Shanghai was marginally lower with Singapore off 0.3 percent, Seoul shed 0.4 percent and Taipei eased 0.3 percent. Mumbai, Jakarta and Bangkok also slipped.
While Donald Trump and Xi Jinping’s agreement to kick-start negotiations provided some much-needed relief—and sent the S&P 500 to a new record on Wall Street—key questions remained unresolved, including on tech trade and intellectual property.
“Traders found themselves running too far ahead of the economic realities after a swathe of disappointing manufacturing reports from the US, China and Europe provided a not-too-subtle reminder that the outlook for global growth remains quite harmful to risk sentiment,” said Stephen Innes at Vanguard Markets.
The closely watched Institute for Supply Management’s nationwide manufacturing index in the US fell to its lowest level in almost three years in June, hit by weak overseas demand with factories reluctant to produce stock they may not be able to sell.
Earlier, figures out of China and Europe pointed to contraction in their respective factory sectors, while Britain’s index fell to its lowest since 2013.
Observers said the figures could put further pressure on central banks to provide support to economies with fresh stimulus.
The Federal Reserve is widely tipped to cut interest rates at its next policy meeting this month and the release of a US jobs report Friday will be closely followed as a weak reading could boost the case for a big reduction. With AFP