Stocks rose for a third day amid thin trading, following overnight gains on Wall Street and as economic managers affirmed the medium-term growth target at 7 percent to 8 percent.
The Philippine Stock Exchange index, the 30-company benchmark, climbed 39 points, or 0.6 percent, to close at 7,267.34 Tuesday. Despite this week’s gain, the bellwether was still down 15.1 percent since the start of the year.
The heavier index, representing all shares, also rose 11 points, or 0.3 percent, to settle at 4,409.83, on a value turnover of P4.8 billion. Losers outnumbered gainers, 97 to 88, while 50 issues were unchanged.
Ten of the 20 most active stocks ended in the green, led by Globe Telecom Inc. which went up 3 percent to P1,648 and developer Megaworld Corp. which advanced 2.3 percent to P4.40. Universal Robina Corp., a leading snack food manufacturer, also gained 2.3 percent to P124.80.
Meanwhile, Asian markets were mixed Tuesday. While they were up from earlier lows, investors continued to fret over looming China-US tariffs that bring a potential trade war a step closer.
Wall Street provided a positive lead but the day began with another selling frenzy that saw Hong Kong plunge more than three percent at one point before bargain-buying provided a small bounce.
Still there are particular fears for Shanghai, which has plunged more than 20 percent from its January high as the colossal Chinese economy shows signs of slowing, even before Donald Trump’s threatened tariffs kick in Friday.
The yuan extended losses and has fallen around eight percent since the end of March—it is now at an 11-month low—adding to fears about the mainland as leaders struggle to cap a debt mountain while also supporting growth.
Analysts dismissed some claims that authorities are allowing the Chinese currency to weaken in order to offset the impact of any tariffs.
“We have already seen the impact on Chinese investors’ anxiety over a weaker currency and subsequent capital outflow in 2015-16,” said Tai Hui, JP Morgan Asset Management chief market strategist for Asia-Pacific.
“This is not a can of worms that Beijing wants to open again,” Hui said.
The US Commerce Department on Monday added to the standoff by recommending against the approval of China Mobile’s seven-year-old application to enter the US market, citing national security concerns.
The call comes as US lawmakers debate reimposing a ban on US firms selling to Chinese telecoms equipment maker ZTE over security considerations, putting its survival in peril.
In share trading, Hong Kong sank more than three percent at one point as traders returned from a long weekend break to play catch up with the rest of Asia’s retreat on Monday.
The Hang Seng then edged back to sit 1.3 percent lower. China Mobile’s shares were down more than two percent in late trade.
Shanghai rose 0.4 percent and Singapore lost 0.2 percent, while Tokyo ended 0.1 percent lower.
Sydney added 0.5 percent, Seoul rose 0.1 percent and Wellington jumped more than one percent. Taipei and Jakarta fell but Bangkok rose. With AFP