The stock market extended its rally Monday as it played catch-up with the rest of the region after a shortened trading week last week in observance of the .
The Philippine Stock Exchange Index rose 73.15 points, or 1 percent, to 7,213.44 on a value turnover of P22.6 billion following the block sale of Energy Development Corp. shares worth P14.56 billion in line with the company’s delisting plan.
Gainers beat losers, 100 to 93, with 44 issues unchanged.
Alliance Global Group Inc. of tycoon Andrew Tan advanced 3.9 percent to P11.80, while International Container Terminal Services Inc., the biggest port operator, climbed 3.6 percent to P93.80.
Universal Robina Corp. of industrialist John Gokongwei, the largest snack food maker, rallied 3 percent to P133.90, while PLDT Inc., the biggest telecommunications company, rose 2.1 percent to P1,419.
The rest of Asian markets fell Monday after Donald Trump’s top economics adviser downplayed the chances of a quick deal to end the China-US trade war, taking the wind out of the sails of last week’s rally.
The US leader fueled a surge in the region’s equities Friday by tweeting that he had held positive talks with Chinese President Xi Jinping, before a report said he had even asked officials to draw up a draft bill with an eye on a potential agreement.
But White House adviser Larry Kudlow later tempered expectations, telling CNBC “there’s no massive movement to deal with trade.”
The news sent US markets into the red, snapping a three-day rally on Wall Street, and sending Asian investors rushing for the door.
“Investors are far too wary of an empty promise,” said Stephen Innes, head of Asia-Pacific trade at OANDA.
“But ultimately, they will need to decide how much of President Trump’s olive branch to China was a ploy to boost equity markets ahead of the US mid-term elections on Tuesday and how much of it is a bona fide attempt to reach an agreement.”
Hong Kong”•which climbed more than four percent Friday in its best day for almost seven years”•sank more than two percent, while Shanghai ended down 0.4 percent.
Dealers are keeping tabs on a massive import expo in Shanghai that Xi opened Monday by telling delegates China would increase efforts to open up its economy.
He said authorities would “step up” moves to stimulate domestic consumption of imports, lower tariffs, ease customs clearance procedures, and implement harsh punishments for intellectual property infringements, a key cause of Washington’s anger with Beijing.
Tokyo finished 1.6 percent lower, Singapore dropped 1.7 percent and Seoul was 0.9 percent off. Wellington and Taipei were also deep in negative territory, while Sydney dropped 0.5 percent.
Traders are now keeping an eye on the US mid-term elections Tuesday, which are seen as a vote on Trump’s performance since taking the White House, with the Democrats looking to take control of the House of Representatives.
A win for them could also raise the chances of Trump being impeached, fueling uncertainty.
“The mid-term elections carry a considerable amount of political and market risk not to mention legal risk for the current administration so that the markets could swivel higher or lower on the outcome of this election,” Innes added. With AFP
