Stocks rebounded Friday to end a nine-day slump, as investors searched for bargains after the benchmark index fell to a six-month low.
The Philippine Stock Exchange index, the 30-company bellwether, advanced 66 points, or 0.9 percent, to close at 7,227.37 Friday. This pushed up total gains this year to 4 percent.
The heavier index, representing all shares, also climbed 37 points, or 0.9 percent, to settle at 4,325.72, on a value turnover of P7.7 billion. Gainers outnumbered losers, 135 to 54, while 46 issues were unchanged.
All six sectors posted gains, while 17 of the 20 most active stocks ended in the green, led by casino operator Bloomberry Resorts Corp. which climbed 8.1 percent to P6.30 and oil refiner Pilipinas Shell Petroleum Corp. which rose 3.7 percent to P69.50.
Property developer Megaworld Corp. rose 3.6 percent to P4.02, while water concessionaire Manila Water Company Inc. added 3.3 percent to close at P31.
Meanwhile, a global stocks selloff extended into Friday trading as crude oil held near a one-month low and investors shunned riskier assets ahead of next week’s US presidential election.
A sharp fall in Tokyo led losses in most major Asian stock markets Friday as traders fret over next week’s US election, with the dollar weakening further and safe-haven gold maintaining its luster.
The pound held on to Thursday’s gains to sit at one-month highs after judges told Britain’s government it must approve June’s referendum to leave the European Union.
Trading floors around the world have been plunged into turmoil this week as market favorite Hillary Clinton’s lead over maverick rival Donald Trump has been slashed days before the Nov. 8 poll.
The former secretary of state is considered by most investors to be a safer, more stable bet than Trump, who is seen as a loose cannon, with policies many fear could wreck the world’s top economy.
“Markets are currently attempting to strike the right balance between the greater probability of a Clinton win and the possibility of a significant selloff on a Trump victory,” Ric Spooner, chief market analyst in Sydney at CMC Markets, said.
On Wall Street the S&P 500 and Nasdaq fell for the eighth straight day, while the Dow ended in the red for the sixth straight session. And the Vix volatility index, which measures market fear, soared 14 percent to its highest levels since Britain’s shock vote in June to exit the European Union.
Those losses spread to Asia again, with Tokyo—which was closed for a holiday Thursday—ending 1.3 percent lower.
Adding to selling on the Nikkei was a surge in the yen against the dollar as traders rush to safe investments while speculation swirls the Federal Reserve will hold off an expected interest rate hike in December if Trump wins owing to fears about the economy.
The greenback bought 103.24 yen in Asia, up from 102.93 yen in New York but well down from the 105.30 yen mark touched earlier this week.
“The dollar is showing clear signs that investors are worried about a Trump win,” Sean Callow, a senior strategist at Westpac Banking Corp. in Sydney, told Bloomberg News. With Bloomberg, AFP