The stock market closed virtually flat Friday on mixed trading, with investors consolidating their holdings ahead of the release of fourth-quarter corporate earnings.
The Philippine Stock Exchange Index added 1.37 points, or 0.02 percent, to 8,814.62 on a value turnover of nearly P8 billion. Losers edged gainers, 103 to 96, with 48 issues unchanged.
Metropolitan Bank & Trust Co., the second biggest bank in terms of assets, rose 1.6 percent to P109.70, while conglomerate Ayala Corp. gained 1.4 percent to P1,065.
Aboitiz Equity Ventures Inc., which is into power generation, banking, electricity distribution and flour milling, declined 2.2 percent to P73.70, while Semirara Mining and Power Corp., the largest coal miner and a major power producer, fell 2.2 percent to P37.
Most Asian markets, meanwhile, resumed their positive start to the year on Friday with Hong Kong extending its record run to 14 days while the euro held gains after the previous day’s jump.
Investors were once again provided a strong lead from Wall Street where all three main indexes advanced to new all-time highs, with energy firms riding a surge in oil prices.
Confidence across world markets is booming on the back of a healthy economic outlook and optimism about corporate profits heading into the latest earnings season.
Hong Kong rose 0.7 percent, supported by flows of cash from mainland Chinese investors attracted by cheaper valuations than at home. The rally has put the Hang Seng Index within two percent of its record high that was set in October 2007.
Shanghai finished 0.1 percent up, an 11th successive gain, while Seoul added 0.3 percent. Singapore climbed 0.2 percent and Taipei put on 0.7 percent. Sydney was marginally higher.
However, Tokyo ended 0.2 percent lower on a stronger yen.
The Japanese unit has strengthened this week after the country’s central bank cut back on its bond-buying stimulus program. The dollar fell toward 111 yen briefly Thursday, its lowest since November, with disappointing US factory gate inflation adding downward pressure.
The euro also ticked up against the greenback after minutes from the European Central Bank’s December board meeting showed members were considering altering their guidance on policy in light of the eurozone’s improving economy.
That suggests policymakers are leading towards winding in their own crisis-era stimulus program, putting it on course to synchronize with the US Federal Reserve, which is already in the process of raising interest rates.
“The big picture is that any shift in communication, whether it happens in March or June or if it’s gradual or hawkish, now seems to be backed by the majority of the governing council, which didn’t seem to be the case in October,” Frederik Ducrozet, an economist at Banque Pictet & Cie in Geneva, told Bloomberg News.
The euro, which had eased slightly this week, bounced back above $1.20 Thursday and was consolidating in Asia. With AFP
