The stock market rallied Friday to snap a three-day slump, buoyed by a government report Thursday showing money sent home by Filipinos working overseas increased 9.7 percent in January from a year ago, the fastest increase in 10 months.
The Philippine Stock Exchange Index rose 48.14 points, or 0.6 percent, to 8,238.15 on a value turnover of P19.7 billion. Losers, however, beat gainers, 139 to 75, with 42 issues unchanged.
The Bangko Sentral ng Pilipinas said remittances reached $2.37 billion in January, up from $2.169 billion in the same month last year. Remittances fuel consumer spending and economic growth.
Jollibee Foods Corp., the biggest fastfood chain, jumped 7.5 percent to P305.40, while major property developer Ayala Land Inc. gained 1.7 percent to P41.
SM Investments Corp. of retail tycoon Henry Sy Sr. climbed 2.7 percent to P937, while unit SM Prime Holdings Inc. added 2.2 percent to P34.75.
The rest of Asian investors, meanwhile, remained on edge Friday as the curtain came down on another volatile week for markets with fears of a global trade war playing off against a positive economic outlook.
Tokyo ended 0.6 percent lower, while Hong Kong slipped 0.4 percent and Singapore eased 0.1 percent. Shanghai fell 0.7 percent, while Bangkok and Jakarta were also down.
But Sydney added 0.4 percent and Seoul gained 0.1 percent. Wellington and Taipei also rose.
Investors have swung from optimism to pessimism since last week’s controversial move by Donald Trump to throw up tariffs on imports of some metals, with the removal of his moderate secretary of state adding to the unease.
However, the president’s agreement to meet Kim Jong Un to discuss North Korea’s nuclear program provided much-needed relief, while a positive jobs and wages report tempered worries interest rates would shoot up.
Attention now turns to the Federal Reserve’s monetary policy meeting next week. A rate rise is expected but its statement and new bank boss Jerome Powell’s comments will be pored over for clues about future hikes with speculation it could announce three more this year.
“It’s shaping up to be arguably one of the most critical central bank policy events in some time as Jay Powell gets set to dictate the course of Fed policy for the remainder of 2018 and beyond,” said Stephen Innes, head of Asia-Pacific trade at OANDA.
“Given the enormity of the risk event, traders are getting remarkably anxious awaiting hints on forward guidance, so we should expect interest rate uncertainty to intensify as we near the event horizon.”
Wall Street’s three main indexes ended mixed, with a drop in US jobless claims providing support, while top White House advisor Peter Navarro, a trade hawk looking to sooth trade war fears, told CNBC the administration planned to work with allies “to make things better for everybody.”
However, he added that Trump would soon consider fresh measures against Beijing over its “theft” of US intellectual property. With AFP