Stocks advanced for a second day, sending the benchmark index above the 7,000-point level, after the government announced the Philippine economy grew 7.1 percent year-on-year in the third quarter, the fastest in Southeast Asia.
The Philippine Stock Exchange index, the 30-company benchmark, jumped 83 points, or 1.2 percent, to close at 7,050.12 Thursday. This also pushed up total gains this year to 1.4 percent.
The heavier index, representing all shares, also rose 30 points, or 0.7 percent, to settle at 4,242.40, on a value turnover of P8.1 billion. Gainers outnumbered losers, 91 to 78, while 53 issues were unchanged.
All six sectoral indices rose, while 13 of the 20 most active stocks ended in the green, led by food manufacturer Universal Robina Corp. which climbed 4.4 percent to P179 and conglomerate Ayala Corp. which gained 3.8 percent to P771.
Property developer Ayala Land Inc. advanced 2.9 percent to P33.95, while telecommunications company PLDT Inc. added 2.9 percent to close at P1,395.
Meanwhile, Asian markets were hit by fresh volatility Thursday as uncertainty permeates trading floors after Donald Trump’s shock election win, while the dollar pushed back up on expectations of a US interest rate hike.
Investors have been struggling to ascertain the outlook for the global economy under a Trump presidency after his bellicose rhetoric regarding trade agreements and spending plans that could ramp up inflation—and borrowing costs—at home.
While a surge in the dollar against the yen has sent Tokyo’s Nikkei to nine-month highs, emerging market bourses and currencies have been hit with an outflow of foreign cash as traders bet on better returns in the United States.
The Nikkei ended flat while Hong Kong edged down 0.1 percent and Sydney gained 0.2 percent.
Shanghai was flat, Seoul added 0.1 percent and Jakarta eased 0.1 percent, while Kuala Lumpur dipped 0.2 percent. However, Manila gained almost one percent after data showed the Philippines economy grew more than expected in July-September.
“Asian markets have been lacking conviction this afternoon,” Gary Huxtable, client advisor at Atlantic Pacific Securities in Australia, said in a note.
The fluctuations came after a tepid lead from Wall Street, where the Dow fell from a record high after a seven-day winning run.
Attention now turns to Federal Reserve boss Janet Yellen’s testimony to congress later in the day, with traders poring over her comments hoping she will provide some idea about the bank’s monetary policy in light of Trump’s win.
Markets had largely expected the Fed to lift rates next month and then gradually through next year. But analysts say that if Trump follows through with pledges to boost spending and cut taxes, inflation could rocket, forcing the Fed to act.
“A December rate hike is almost guaranteed,” James Woods, global investment analyst at Rivkin Securities in Sydney, said in an e-mail to clients. “What will be important will be any revisions to future hike projections.”
The dollar is heading towards the 110 yen mark for the first time since June and is also at a near one-year high on the euro.
But emerging market currencies are under pressure, hit by a flood of cash out searching for better, safer returns as well as worries about Trump’s protectionist views that could see him throw up huge tariffs to the world’s number-one economy.
Indonesia’s rupiah, the South Korean won and Malaysian ringgit were all down against the dollar Thursday. With AFP, Bloomberg