Stocks rebounded Monday, sending the benchmark index above the 7,300-point mark, following a positive lead from Wall Street.
The Philippine Stock Exchange index, the 30-company benchmark, jumped 141 points, or 2 percent, to close at 7,374.35, the highest in nearly three months. The bellwether was up 7.8 percent since the start of the year.
The broader all-share index also gained 60 points, or 1.4 percent, to settle at 4,426.14, on a value turnover of P5.6 billion. Advancers outnumbered losers, 108 to 79, while 45 issues were unchanged.
Sixteen of the 20 most active stocks ended in the green, led by conglomerate SM Investments Corp. of the Sy family which climbed 5.4 percent to P706. Casino operator Melco Crown (Philippines) Resorts Corp. rose 4.8 percent to P4.63, while Bloomberry Resorts Corp. gained 4.3 percent to P7.35.
Meanwhile, the dollar retreated against most of its peers Monday, with warnings of wild volatility ahead as Donald Trump began his presidency promising to put America first and hitting out at global trade deals.
While trading floors are ravaged by uncertainty over the tycoon’s plans, shares in most Asian markets rose following a positive lead from Wall Street, though Japan’s Nikkei tanked as the greenback slipped against the yen.
Trump’s inauguration speech Friday continued his campaign rhetoric, saying “every decision on trade, on taxes, on immigration, on foreign affairs will be made to benefit American workers and American families”.
On Sunday, he vowed to start renegotiating the North American Free-Trade Agreement during upcoming talks with Mexico and Canada.
“Markets are now waiting for more evidence that Donald Trump will deliver on fiscal stimulus and deregulation,” Shane Oliver, Sydney-based global investment strategist at AMP Capital Investors, told Bloomberg News.
“Shares remain vulnerable to a further correction or consolidation in the next month or so.”
But the dollar—which soared in November and December on expectation Trump’s big-spending, tax-cutting, deregulation plans would fan inflation—continued to struggle in January.
In afternoon trade Monday it bought 113.40 yen, well down from 114.60 yen Friday and more than four percent down from the highs touched late in December. It was also well down against the euro and pound despite ongoing concerns about Britain’s exit from the European Union.
“I suspect we’re entering extremely volatile times for the dollar,” Stephen Innes, senior trader at Oanda, said in a note.
“There remains a high level of uncertainty about the new administration’s dollar policies, especially following President Trump’s recent remarks on the strong dollar directed at China.”
Trump last week said the greenback was too strong against China’s yuan and claimed this was “killing” the US economy.
The stronger yen dragged down exporters on Tokyo’s Nikkei, which ended 1.3 percent lower. Takata collapsed again, diving nearly 18 percent on fears of a drawn-out bankruptcy restructuring for the airbag maker at the centre of the biggest-ever auto safety recall.
The embattled stock, which has lost more than half its market value in a week, fell by its daily limit, extending a losing streak to a sixth session.
Sydney was also down, shedding 0.8 percent, and Hong Kong gave back early advances to trade flat in the afternoon.
However, Shanghai closed up 0.4 percent, while Seoul was marginally higher and Singapore added 0.3 percent. Taipei surged one percent ahead of a week-long Lunar New Year holiday and there were healthy gains in Bangkok. With AFP, Bloomberg