Stocks surged to a new all-time high Monday, in step with most Asian markets as traders looked past a surprise drop in US jobs.
The Philippine Stock Exchange Index added 56.50 points, 0.7 percent, to 8,367.38 on a value turnover of P6.1 billion. The index eclipsed the previous high of 8,344.05 registered on October 4, 2017.
Gainers beat losers, 106 to 88, with 62 issues unchanged.
Conglomerate Ayala Corp. rose 2.4 percent to P1,039, while LT Group Inc. of the tobacco and airline tycoon Lucio Tan climbed 2 percent to P18.30.
PXP Energy Corp., which has oil exploration contracts in the disputed West Philippine Sea, jumped 9.9 percent to P8.88, while Macro Asia Corp., which provides airport services, advanced 1.6 percent to P15.52.
Most Asian markets, meanwhile started the week on a positive note Monday, with Shanghai returning from a week-long break with healthy gains.
But geopolitical tensions returned with another feared North Korea long-range missile test reportedly in the planning and US President Donald Trump suggesting that talking to Kim Jong-Un’s regime was a waste of time and “only one thing will work.”
The Turkish lira was sitting close to record lows against the dollar as Ankara and Washington each cancelled visa services for the other in a deepening diplomatic row.
Wall Street provided a meek lead for Asia, with the Dow and S&P 500 retreating from record highs in response to figures on Friday showing the US lost 33,000 posts in September”•the first drop since 2010.
However, while the fall compared with a forecast gain of 75,000, analysts pointed to improving wage growth and a further dip in the overall unemployment rate. They added that the figure was likely an aberration owing to one-off events in the hurricanes that hit Florida and Texas.
Shanghai ended 0.8 percent higher as investors returned from the week-long Golden Week celebrations and reacted for the first time to the Chinese central bank’s decision to cut the amount of cash banks must hold in reserve as part of a push to help small businesses.
Sydney rose 0.5 percent and Wellington was up 0.4 percent. However, Hong Kong retreated 0.5 percent and Singapore was 0.2 percent off.
Tokyo, Seoul and Taipei were closed for public holidays.
Eyes are now turning back to the US-North Korea standoff after a Russian lawmaker said Pyongyang was planning to fire another missile, which could hit the US west coast.
“There was news over the weekend that ‘the little rocket man’ in North Korea is now capable of launching a missile that can hit the US mainland,” Shane Channel, equity and derivatives adviser at ASR Wealth Advisers, said in a commentary referring to Trump’s name for Kim.
That, added to Trump’s remark, led to a return to safe-haven assets with gold up more than one percent at $1,285 on Monday.
The dollar held up against its major peers as markets continue to bet on a third interest rate hike this year, likely in December. With AFP
