The stock market bounced back Wednesday from losses in the previous day, with blue chips leading the rally amid the release of more earnings report this week.
The Philippine Stock Exchange Index jumped 166.22 points, or 2.2 percent, to 7,838.22 on a value turnover of P7.2 billion. Gainers overwhelmed losers, 120 to 74, with 46 issues unchanged.
Speculative issue PXP Energy Corp., which is still keen on drilling in the disputed West Philippine Sea, surged 39 percent to P14.18, while SM Investments Corp. of retail tycoon Henry Sy Sr. climbed 4.2 percent to P990.
Aboitiz Equity Ventures Inc., which is into power generation and distribution, banking, food, and infrastructure, advanced 4.1 percent to P59.70, while Manila Electric Co., the biggest retailer of electricity, gained 4.1 percent to P395.
The rest of Asian markets were mixed Wednesday, with Shanghai and Hong Kong sharply lower following reports the US was planning to more than double planned tariffs on China.
The region started on a positive note, tracking a Wall Street lead on hopes China and the US would resume talks to resolve their deepening trade war. Healthy corporate earnings also provided support.
Bloomberg News reported that Washington and Beijing were looking to discuss the tariffs row that has fueled fears of an all-out trade war between the world’s top two economies.
That came after Treasury Secretary Steven Mnuchin said last week that “some quiet conversations” had taken place, adding that the US was open to discussions “any time China is willing to seriously negotiate.”
However, on Tuesday reports said the White House was considering raising to 25 percent from 10 percent its planned tariffs on $200 billion worth of Chinese goods.
Tariffs on $16 billion of Chinese imports are due in coming weeks, following measures on $34 billion worth of goods imposed in July, which prompted a response in kind by Beijing.
Nick Griffin, chief investment officer at Munro Partners, told Bloomberg Television: “The tariff issue is ongoing, I think it’s a negotiating tactic.
“How much we take of this as real and affecting earnings is questionable at this stage. In terms of an actual earnings effect, it’s not that big at the moment, it’s mainly just sentiment and risk appetite and for that, it’s a moving feast.”
Still, Shanghai tumbled 1.80 percent and Hong Kong lost 0.9 percent, while Sydney slipped 0.1 percent. Wellington shed 0.7 percent.
But Tokyo ended 0.9 percent higher on a weaker yen, while Singapore added 0.3 percent and Seoul gained 0.5 percent. Taipei, Jakarta, and Bangkok were also up.
Suppliers to Apple performed well after the US giant announced better-than-forecast profits. Foxconn climbed 1.7 percent in Taipei, Japan Display rallied 1.4 percent in Tokyo and Seoul-listed LG Display was 1.9 percent higher.
On currency markets, the yen extended Tuesday’s drop after the Bank of Japan tweaked monetary policy but held off on any major tightening measures while revising down inflation expectations. With AFP
