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Friday, March 29, 2024

Stocks climb to new record

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The stock market gained Friday as traders brushed off initial concerns over North Korea’s latest missile launch, with the benchmark index registering another record high.

The Philippine Stock Exchange added 35.94 points, or 0.4 percent, to a new all-time high of 8,180.85 on a value turnover of P11.2 billion. Losers, however, edged gainers, 101 to 98, with 48 issues unchanged.

International Container Terminal Services Inc., the biggest port operator, rose 2.4 percent to P108.80 on increased trade prospects, while Semirara Mining and Power Corp. increased 2.1 percent to P48. 

Ayala Land Inc., a major property developer advanced 1.9 percent to P45, while SM Investments Corp. of retail tycoon Henry Sy Sr. climbed 1.2 percent to P835.

Most other Asian markets, meanwhile, managed to pare their losses.

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Pyongyang fired its second rocket over Japan’s Hokkaido in less than a month, just days after the UN Security Council imposed sanctions in response to its nuclear test.

Analysts said the rocket travelled further than any other it has fired, adding to fears about the North’s ability to strike the US mainland with an atomic bomb.

The news rattled regional markets, which had started to enjoy a return to optimism after last week’s global sell-off sparked by the nuclear test that fanned fears of a regional conflict.

However, by the end of the day the losses had either been sharply cut back or reversed.

Seoul bounced back to end 0.4 percent higher while the Korean won also made a U-turn to sit 0.1 percent up.

Tokyo maintained its gains through the day, rising 0.5 percent as the yen weakened against the dollar on a strong US inflation report. The greenback briefly broke 111 yen for the first time since early August before easing back.

And Hong Kong rose 0.1 percent but Shanghai shed 0.5 percent, Singapore lost 0.2 percent and Sydney was 0.8 percent off. Wellington was lower but Taipei rose.

In early European trade, London fell 0.3 percent, while Paris and Frankfurt were each 0.1 percent off.

“I wouldn’t necessarily say this is an escalation,” James Soutter, portfolio manager at K2 Asset Management in Melbourne, told Bloomberg News.

“This is more of a continuance of provocation. Hence markets won’t like it, but I don’t think it’s necessarily the precursor to a sustained market pullback.”

The pound built on gains against the dollar after the Bank of England (BoE) Thursday surprised everyone with a hawkish statement in its latest policy meeting.

While it left borrowing costs unchanged, its governor Mark Carney hinted at a lift next month by saying the “possibility is definitely increased.”

His comments came after data this week showed inflation surged last month to 2.9 percent, well up from the BoE’s two percent target, as the weaker pound made goods more expensive.

On the day the new ten-pound note went into circulation, sterling soared to just above $1.34 Thursday, from close to $1.32 earlier. And on Friday it extended its run to $1.3437, its highest since mid-2016. With AFP

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