The stock market rose Tuesday on bargain hunting to stop a five-day slump that saw the Philippine Stock Exchange Index break previous support barriers.
The PSEi climbed 60.55 points, or 0.8 percent, to 8,145 points on a value turnover of P7.8 billion. Gainers beat losers, 102 to 97, with 49 issues unchanged.
SM Prime Holdings Inc. of retail tycoon Henry Sy Sr. gained 2.1 percent to P36.50, while Bank of the Philippine Islands, the third-biggest lender in terms of assets, rallied 2.8 percent to P102.50.
Cemex Holdings Philippines Inc., a major cement producer, advanced 6.4 percent to P4.79, while retailer Puregold Price Club Inc. of tycoon Lucio Co. rose 2.5 percent to P49.20.
Meanwhile, tech giants including Samsung and Tencent sank in Asian trade on Tuesday, tracking a sell-off in their US rivals and dragging most regional markets lower.
While investors welcomed news that the US Senate had finally passed controversial tax reforms, the deal must still be reconciled with a House bill, while the probe into alleged Russian meddling in last year’s election continues to dog Donald Trump.
The Dow closed at a record high on Wall Street but the Nasdaq tumbled more than one percent as dealers shifted out of the tech sector, which has enjoyed a healthy rally through the year, and into financial firms.
“The high-tech sell-off has worsened overall sentiment,” said Toshihiko Matsuno, chief strategist at SMBC Friend Securities.
“Investors seem to be rebalancing (their portfolios) to take profits towards the end of the year, moving out of high-performing technology and health care issues into financial stocks that are likely to fare well next year,” Matsuno told AFP.
Samsung fell 0.2 percent, while Tencent sank 1.9 percent and Sharp lost more than two percent.
On broader markets Tokyo ended 0.4 percent lower and Hong Kong had eased 0.5 percent in the afternoon, while Sydney and Shanghai each dipped 0.2 percent by the close.
Wellington, Taipei, Jakarta and Kuala Lumpur were also lower but Seoul and Singapore edged up.
Shane Chanel, equities and derivatives adviser at ASR Wealth Advisers, also warned of the possibility of a delay to a key corporate tax cut as part of the Senate-House talks.
“I still believe that the market is pricing in a lot of optimism and if lawmakers delay implementation of this policy to 2019, I would expect to see a correction accordingly,” he said.
On currency markets the pound continued to struggle against the dollar after falling on news that British and European negotiators had failed to reach an agreement on Brexit.
With Sterling had rallied on hopes British Prime Minister Theresa May was close to a divorce deal. But the talks collapsed after the Democratic Unionist Party said it would not back her position on the future of the Northern Irish border.
The British unit sank from a high of $1.3539 to $1.3414 on the news before edging back slightly.
Investors are watching events in Washington as political risk returns to the fore, after Trump’s former national security adviser Michael Flynn admitted lying to investigators probing Russia’s possible involvement in the election. with AFP