Stocks rose Thursday, after the government said the Philippine economy grew 7 percent in the second quarter and Federal Reserve minutes tempered speculation US interest rates will rise this year.
The Philippine Stock Exchange index, the 30-company benchmark, picked up 6 points, or 0.1 percent, to close at 7,952.81. The bellwether was up 14.4 percent since the start of the year.
The heavier index, representing all shares, also gained 10 points, or 0.2 percent, to settle at 4,707.58, on value turnover of P8.3 billion. Losers outnumbered gainers, 109 to 80, while 51 issues were unchanged.
Eight of the 20 most active stocks ended in the green, led by PhilWeb Corp. which surged 35.3 percent to P8.80, after owner Roberto Ongpin offered to donate his shares in the company to state-run Philippine Amusement and Gaming Corp.
Integrated Micro-Electronics Inc., a subsidiary of Ayala Corp., climbed 22.9 percent to P7.40, after it announced the acquisition of a 76-percent stake in Via Optronics GmbH of Germany, a leading optical bonding and display solutions provider, for 47.4 million euros or P2.47 billion.
Meanwhile, most Asian stocks ticked up Thursday, tracking gains on Wall Street after minutes from the Federal Reserve’s July meeting showed caution about raising interest rates, supporting markets.
But Tokyo’s main index sank as the dollar fell against the safe haven Japanese currency, slumping below 100 yen for the second time this week and hitting Japan’s exporters.
US Federal Reserve policy makers last month believed risks to the US economy had lessened but wanted to keep their interest rate policy “options open”, according to minutes released Wednesday, dampening hopes for an imminent rate hike.
The Federal Open Market Committee remained divided on the near-term danger of inflation, with some seeing little threat but others worried that there could be a sudden upward push on prices as the labour market continues to tighten.
“The message from the Fed is that they’re going to be cautious in raising rates,” Shane Oliver, Sydney-based global investment strategist at AMP Capital Investors Ltd. told Bloomberg News. “That’s supportive of the share markets.”
Hong Kong stocks rallied 1.2 percent in morning trade, while Shanghai was up 0.1 percent, and Seoul added 0.3 percent.
Wellington and Jakarta also rose.
But Tokyo dropped 0.4 percent, as the stronger yen put pressure on exporters such as Toyota and Nissan, as it makes them less competitive overseas and tends to dent profits. With AFP, Bloomberg
