The stock market rose Thursday, tracking the record close on Wall Street overnight after encouraging trade negotiations between the US and Canada.
The Philippine Stock Exchange Index gained 22.20 points, or 0.3 percent, to 7,853.16 on a value turnover of P6.3 billion. Gainers edged losers, 99 to 97, with 50 issues unchanged.
Metro Pacific Investments Corp., which is into toll roads, infrastructure, water and electricity distribution, and hospitals advanced 5.4 percent to P5.50, while GT Capital Holdings Inc. of tycoon George Ty climbed 4.5 percent to P890.
Pilipinas Shell Petroleum Corp., the smaller of the country’s two oil refineries, added 1.3 percent to P57.95, but PLDT Inc., the biggest telecommunications firm, lost 1.1 percent to P1,400.
Most Asian markets, meanwhile, fell Thursday, with investors unable to build on another record close on Wall Street, instead taking profits after a strong week.
New York’s indexes powered ahead as news that Canada and the United States were close to a fresh deal that would revive the North American Free Trade Agreement coincided with better-than-expected US growth and a possible breakthrough in Brexit talks.
Tokyo ended up 0.1 percent but Shanghai sank more than one percent and Hong Kong lost 0.9 percent in the afternoon.
Singapore lost 0.4 percent, Seoul was off 0.1 percent and Sydney was marginally lower, while there were also losses in Wellington, Taipei and Mumbai.
The pound and euro were also holding up after surging when the European Union’s top negotiator said it was open to a unique deal with Britain, which raised hopes the country will leave the bloc with a working relationship.
For most of this year world markets have been under pressure as China and the US have threatened and imposed tit-for-tat tariffs that fueled fears of a global trade war, while Washington has also picked fights with allies including the EU, Canada and Mexico.
But optimism has recently picked up. On Monday Donald Trump and his Mexican counterpart Enrique Pena Nieto announced a new trade agreement and on Wednesday came news that Canada was close to a deal, fueling hopes for a Nafta 2.0.
Trump and Canadian Prime Minister Justin Trudeau expressed optimism a deal was close and the White House plans to notify Congress on Friday of its intention to enter into a new free-trade agreement.
Also on Wednesday the Commerce Department said the US economy expanded more than initially reported in the second quarter thanks to a rise in business investment.
“If you think about the handbrake on sentiment over the past six months or so, it’s mostly about the handbrake on growth and the uncertainty that the trade wars have caused with a little added worry about what Brexit might look like,” said Greg McKenna, chief market strategist at AxiTrader.
“So, news overnight that we could have Canada in a new Nafta deal by the end of this week and that the EU is ready to offer the UK an unprecedented deal is good news for markets. And for the global economy.” With AFP
