The stock market gained slightly Wednesday after investors adopted a wait-and-see mode ahead of the release of the March inflation figures today.
The Philippine Stock Exchange Index added 15.85 points, or 0.2 percent, to 7,895.06 on a value turnover of P6.4 billion. Gainers edged losers, 100 to 99, with 45 issues unchanged.
The Bangko Sentral ng Pilipinas said last week inflation rate in March likely eased to as low as 3.1 percent from 3.8 percent in February, pulled down by lower prices of rice and other agricultural products.
ING Bank Manila senior economist Nicholas Mapa said earlier the March inflation likely decelerated from 3.8 percent in February, enough to hit a three-month average that is within the target range of 2 percent to 4 percent.
Casino operator Bloomberry Resorts Corp. advanced 4.6 percent to P12.20, while Phinma Energy Corp. climbed 6.8 percent to P1.57.
Security Bank Corp., the sixth biggest lender in terms of assets, rose 1.9 percent to P175, but Cemex Holdings Philippines Inc. slumped 15 percent to P2.26 after the cement company said it may conduct a stock rights offering to finance expansion.
The rest of Asian markets enjoyed another rally Wednesday as a report said China and the US were closing in on a deal to end their long-running trade row.
Hong Kong jumped more than one percent”•having risen for six straight days”•Shanghai climbed 1.2 percent and Tokyo was one percent higher.
Sydney gained 0.7 percent, while Seoul rose 1.2 percent and Singapore piled on 0.9 percent, with Taipei, Mumbai and Bangkok also higher.
The pound extended gains after British Prime Minister Theresa May said she would look for another Brexit delay and softened her position on the issue to avert a calamitous no-deal divorce from the European Union.
While Wall Street provided a flat lead, Asian investors built on recent gains, with optimism given an extra boost by a report in the Financial Times saying Beijing and Washington were on course for a historic agreement.
Expectations that the world’s top two economies will eventually sign a deal has been a key driver of a global equities rally this year and the FT article adds to the general sense of hope.
It comes after better-than-expected factory data out of China and the US that eased worries about growth in the global economy, while a dovish turn from central banks has also provided support.
“Recent positives such as the US Federal Reserve pausing their interest rate increases, incremental signs of progress on China-US trade negotiations and a dovish bias from China’s (central bank) to support growth have given investors a sunnier attitude about risk assets,” Tai Hui, chief market strategist for Asia Pacific at JP Morgan Asset Management, said.
The pound extended Tuesday’s jump after May, who is struggling to get her Brexit agreement through parliament, said she would request a second delay to the April 12 divorce day that is “as short as possible and which ends when we pass a deal.” With AFP