The stock market rose Tuesday on bargain-hunting to check a three-day skid, on prospects of a much robust economic growth for the remainder of 2019.
The Philippine Stock Exchange Index gained 36.28 points, or 0.5 percent, to 7,761.29 on a value turnover of P18 billion. Gainers beat losers, 100 to 80, with 53 issues unchanged.
The Economic Development Cluster has agreed on a “catch-up” strategy to achieve the 6-7 percent growth target this year after expansion slowed to a four-year low of 5.6 percent in the first quarter resulting from the four-month delay in the passage of the 2019 national budget.
International Container Terminal Services Inc., the biggest port operator, added 1 percent to P137.30, while SM Prime Holdings Inc., the largest integrated property developer, climbed 2.2 percent to P39.25.
Alliance Global Group Inc. of tycoon Andrew Tan advanced 3.2 percent to P15, while Manila Electric Co., the biggest retailer of electricity, rose 1.5 percent to P372.40.
The rest of Asian markets largely pushed higher Tuesday, following up on a positive performance by European shares overnight as investors breathed a sigh of relief over populists’ failure to take over the European parliament after weekend elections.
Tokyo closed 0.4 percent higher, while Hong Kong edged up 0.3 percent, and Shanghai gained 0.6 percent. Seoul also inched up 0.2 percent but Singapore lost 0.1 percent.
Although voters shifted allegiances in the EU elections on Sunday, the above-average turnout did not translate into a populist surge, as mainstream parties managed to keep control of the parliament.
The gains in Europe prompted a solid opening for Tokyo, with US President Donald Trump taking a softer approach in Washington’s trade dispute with Japan as he wraps up his visit to the Asian ally.
“Today’s Tokyo market is expected to remain well supported,” Okasan Online Securities said in a commentary.
“His visit to Japan is seen as boosting Prime Minister (Shinzo) Abe’s support, which is positive for the market.”
Markets also enjoyed a boost on the back of a Bloomberg News report that Chinese e-commerce giant Alibaba was looking to raise $20 billion through a second listing in Hong Kong later this year after its record-breaking debut in New York in 2014.
The report comes as a trade row between Washington and Beijing escalates—with no date set for tariff negotiations to resume—and could be a harbinger of a new chapter for Chinese business.
“Exciting news for Hong Kong and perhaps a sign of things to come as Chinese companies look locally to raise funds instead of an unwelcoming and suspicious US,” said OANDA senior market analyst Jeffrey Halley.
Trading in oil saw modest rises after prices plunged last week following a surprise increase in US crude and gasoline inventories.
Analysts said prices would likely extend a comeback despite jitters over the US-China trade war discouraging future demand.
“With the summer driving season beginning in the US, demand is expected to pick up and with Hurricane season expected to be near-normal, oil prices should see some support shortly,” said OANDA senior market analyst Edward Moya. With AFP