Stocks rose for a second day, ahead of the release of first-quarter economic growth data which are expected to meet the government’s growth target.
The Philippine Stock Exchange index, the 30-company benchmark, rose 35 points, or 0.5 percent, to close at 7,826.53 Wednesday. It was also up 14.4 percent since the start of the year.
The heavier index, representing all shares, advanced 10 points, or 0.2 percent, to settle at 4,653.01, on a value turnover of P8 billion. Losers outnumbered gainers, 98 to 92, while 58 issues were unchanged.
Fifteen of the 20 most active stocks ended in the green, led by port operator International Container Terminal Services Inc. which climbed 2.2 percent to P99.50 and oil refiner Petron Corp. which gained 1.7 percent to P10.50. Metropolitan Bank & Trust Co., the second largest lender, rose 1.1 percent to P89.
Meanwhile, Tokyo stocks ended lower on Wednesday as the yen strengthened against the dollar following explosive accusations that US President Donald Trump tried to quash an FBI probe.
The embattled administration is facing claims by recently fired FBI boss James Comey that the tycoon pressed him to drop an investigation into ex-national security advisor Michael Flynn over his links to Moscow.
The White House denied the claims, but it was the latest in a string of crises that have raised doubts about Trump’s future and his ability to push through an economic agenda that includes tax cuts and big government spending.
“At the very least the view is that Trump’s economic policies will be delayed over this, and the dollar is being sold,” Tomoichiro Kubota, an analyst at Matsui Securities in Tokyo, told Bloomberg News.
“At the moment there’s a strong sense of investors trying to gauge how far this will go. It’s a situation where you can’t completely rule out the possibility of impeachment down the road, so it’s difficult for investors to buy.”
Tokyo’s benchmark Nikkei 225 index fell 0.53 percent, or 104.94 points, to 19,814.88, while the Topix index of all first-section issues was down 0.53 percent, or 8.41 points, at 1,575.82.
The dollar weakened to 112.31 yen, from 113.15 yen in New York.
S&P 500 Index contracts declined with European and Asian equities on reports that Trump asked FBI Director James Comey to drop an investigation into former National Security Adviser Michael Flynn. The dollar was already in retreat after a report that the US president shared terrorism intelligence with Russian officials, an action he has since defended. The Bloomberg Dollar Spot Index dropped for a sixth day, crude extended losses and volatility indexes climbed.
“At the very least the view is that Trump’s economic policies will be delayed over this, and the dollar is being sold,” said Tomoichiro Kubota, an analyst at Matsui Securities Co. in Tokyo. “At the moment there’s a strong sense of investors trying to gauge how far this will go. It’s a situation where you can’t completely rule out the possibility of impeachment down the road, so it’s difficult for investors to buy.”
After a protracted period of dormancy, financial markets are beginning to react to developments in Washington in a more unison manner. With stock and bond volatility muted, investors have looked for a clearer reaction to the political din in currency markets. The US currency now sits at its lowest level since the day of Trump’s shock win, a retracement some blame on perceptions his legislative agenda faces a steeper climb. With Bloomberg, AFP
