Stocks rose Thursday to end a two-day slump, following another record close on Wall Street and as several mining issues recovered.
The Philippine Stock Exchange index, the 30-company benchmark, gained 17 points, or 0.3 percent, to close at 7,252.66. This pushed up total gains this year to 6 percent.
The heavier index, representing all shares, also advanced 14 points, or 0.3 percent, to settle at 4,394.08, on a value turnover of P6.7 billion. Gainers outnumbered losers, 97 to 95, while 42 issues were unchanged.
Mining and oil was the biggest gainer among the six sectoral indices, with a 2-percent gain. Marcventure Holdings Inc. climbed 9.1 percent to P1.94, while Global Ferronickel Holdings Inc. rose 8.7 percent to P2.74. Philex Mining Corp. went up 4.4 percent to P9.80.
Thirteen of the 20 most active stocks ended in the green, led by Pacifica Inc. which surged 38.6 percent to P0.061 and developer Arthaland Corp. which jumped 16.9 percent to P1.66. PLDT Inc. added 4.4 percent to close at P1,515.
Meanwhile, most Asian markets rose Thursday but traders remain cautious about the global outlook, with another record close on Wall Street providing some support but Tokyo hit by a stronger yen.
The uncertainty that has tainted trading floors for weeks continues to weigh as Donald Trump appears to press on with a protectionist agenda but provides no details on his pledge to ramp up the US economy and cut red tape.
The dollar has been a major casualty as dealers withdraw initial bets that his big-spending plans would stoke US inflation, and in turn, interest rates. The greenback has fallen around five percent from this year’s highs against the yen.
On Thursday the US unit was sitting around 112 yen, having fallen below that level for the first time since November.
However, the dollar remains buoyed against the euro as the rise of populists ahead of elections this year in France, Germany, the Netherlands and Italy fuel worries about the future of the European Union. Added to that is the prospect of a return to the Greek debt crisis.
In share trading, Tokyo ended 0.5 percent lower, hit by a stronger yen. However, Sydney closed up 0.2 percent and Singapore gained 0.5 percent while Seoul also edged up.
Hong Kong added 0.4 percent in the afternoon while Shanghai put on 0.5 percent at the close.
In New York, the Nasdaq ended at a record high for the second successive day, while the Dow closed above 20,000 despite ending slightly lower.
But while US markets are pushing on, Asian dealers are more concerned about the new US president’s anti-globalization rhetoric, which has fueled fears of a trade war.
“The Trump trade is the primary focus for equity markets and without any further guidance on US tax policies, investors stay on the sidelines, annoyed and concerned about the unknown,” said Stephen Innes, senior trader at Oanda, in a note.
Investors will be closely watching this weekend’s meeting between Trump and his Japanese counterpart Shinzo Abe in which they will discuss trade and other issues.
“With the US-Japan meeting coming up, investors are taking more of a wait-and-see stance,” Shunichi Otsuka, general manager of research and strategy at Ichiyoshi Securities, told Bloomberg News.
But Oanda’s Innes warned: “The event risk is clearly the downside, if this meeting does not go well as on trade negotiations.”
Gold prices extended their recent gains as nervous traders move into safer assets as a hedge against volatility. The precious metal climbed more than $3 to $1,240, and is up eight percent since the start of the year. With AFP, Bloomberg