The stock market rallied Wednesday on sustained bargain-hunting, with blue chips most battered by the recent slump posting gains.
The Philippine Stock Exchange Index jumped 169.22 points, or 2.4 percent, to 7,176.43 on a value turnover of P6.5 billion. Gainers beat losers, 102 to 95, with 43 issues unchanged.
JG Summit Holdings Inc. of industrialist John Gokongwei advanced 5.2 percent to P51.25, while Bank of the Philippine Islands, the third-biggest lender in terms of assets, rose 4.6 percent to P90.
SM Prime Holdings Inc. of retail tycoon Henry Sy Sr. climbed 5.3 percent to P35.50, while parent firm SM Investments Corp. surged 4.5 percent to P875.
The rest of Asian markets, meanwhile, struggled to maintain early momentum and extended their recent losses as trade war fears torment investors.
Both main crude contracts piled higher after the State Department warned US allies they would be hit with sanctions if they did not halt Iran oil purchases by November 4.
Analysts said that while the announcement was not unexpected, the mere confirmation of the fact was enough to push investors into buying mode.
The commodity has enjoyed a healthy run since the weekend when Opec and Russia agreed to a moderate lift in their 18-month-old output ceiling.
Unrest in producer Libya was also providing support.
The higher oil prices—Brent added more than two percent and WTI more than three percent Tuesday—lifted energy firms. CNOOC soared more than three percent in Hong Kong while PetroChina added 0.4 percent. Woodside Petroleum in Sydney added 1.4 percent, while Tokyo-listed Inpex climbed 1.5 percent and JXTG soared more than six percent.
However, trade tensions continue to loom large, with investors on edge awaiting the next developments.
Tokyo ended 0.3 percent lower. Hong Kong lost 1.8 percent and Shanghai closed 1.1 percent down, with the mainland Chinese index now in bear market territory—down 20 percent from its recent highs.
Seoul edged 0.4 percent down, while Singapore shed 0.1 percent and Sydney was marginally lower. Taipei and Mumbai fell but Wellington, Bangkok and Jakarta were up.
Stephen Innes, head of Asia-Pacific trading at OANDA, said Donald Trump’s attack on Harley-Davidson indicated he is not ready to back down on his hardline protectionist America first agenda.
The president on Tuesday hit out at the motorbike maker after it said it was planning to shift some manufacturing overseas because of European Union tariffs put in place as retaliation for US duties.
He said the bikes should “never” be built outside the United States, and tweeted: “Harley must know that they won’t be able to sell back into US without paying a big tax!”
In a commentary, Innes said: “The only thing I can think of that is more iconic Americana than apple pie is Harley-Davidson.
“So, after the president’s recent Twitter tirade directed at the iconic motorcycle manufacturer, it cements the view that, friend or foe, no one is safe from the wrath of the US administration’s America First trade policy.” With AFP
