The stock market jumped Thursday buoyed by a government report that spending rose significantly in the first seven months of 2018, bolstering prospects that the economy is still on track to post a robust growth.
The Philippine Stock Exchange Index surged 171.77 points, or 2.2 percent, to 7,804.03 on a value turnover of nearly P8 billion. Gainers overwhelmed losers, 130 to 69, with 50 issues unchanged.
The government’s budget deficit climbed 71 percent in July to P86.4 billion from P50.5 billion a year ago, as spending picked up 34 percent ahead of the 24-percent increase in tax collection.
The Bureau of the Treasury said the cumulative budget deficit in the first seven months as a result hit P279.4 billion, or 36 percent higher than the P205-billion shortfall in the same period last year.
Conglomerate San Miguel Corp. advanced 8.6 percent to P160, while unit San Miguel Food and Beverage Inc. climbed 15.1 percent to P92.10.
San Miguel Food plans to raise P142.8 billion from the sale of up to 1.02 billion secondary shares before the end of the year. The company set an offering price of up to P140 apiece, significantly higher than the stock’s closing price of P80 on Wednesday.
Bank of the Philippine Islands, the third-biggest lender in terms of assets, rose 5.2 percent to P95.80, while Alliance Global Group Inc. of Andrew Tan gained 5.8 percent to P13.42.
The rest of Asian markets were mixed Thursday as China and the US exchanged fresh tit-for-tat tariffs on billions of dollars of goods while the two sides held talks on their long-running trade dispute.
Washington imposed levies on $16 billion in Chinese imports, sparking an immediate retaliation in kind from Beijing, which said it “firmly opposes the tariffs and has no choice but to continue to make the necessary counter-attacks.”
China also said the US was “clearly suspected” of violating World Trade Organization rules and that it would file a lawsuit with the group.
It is the second round of such measures after the world’s top two economies swapped tariffs on $34 billion of goods in July.
The fresh tariffs came as officials from each side hold their first talks since June aimed at easing a row that has dragged on equities for months. However, observers are cautious about what progress they will make initially.
Stock markets in Asia fluctuated through the day and by the close Tokyo was up 0.2 percent while Shanghai rose 0.4 percent.
Singapore jumped 1.6 percent after a one-day holiday and Seoul gained 0.4 percent but Hong Kong fell 0.5 percent in the afternoon.
Sydney fell 0.3 percent—and the local dollar shed 0.8 percent—as Australia’s Prime Minister Malcolm Turnbull fights for his political life following a leadership challenge.
The S&P/ASX 200 was also being dragged by a 2.8 percent plunge in Qantas as a jump in the airline’s profits was offset by its worries about rising fuel costs.
Investors are keeping tabs on developments in Washington after President Donald Trump’s former personal adviser admitted a series of charges including illegal use of election funds. With AFP
