Share prices rose slightly Thursday in mixed trading, with market sentiment boosted by the central bank’s assessment of a tamer inflation rate for the rest of the year.
The Philippine Stock Exchange Index added 20.78 points, 0.3 percent, to 8,051.76 on a value turnover of P9.1 billion. Losers, however, beat gainers, 104 to 82, with 52 issues unchanged.
The Bangko Sentral ng Pilipinas is expected to maintain the benchmark policy rates of 4.5 percent in the next two meetings amid the benign inflation environment, a member of the policy-making Monetary Board said Tuesday.
Monetary Board member Felipe Medalla said inflation indicators being constantly monitored by monetary authorities “remained stable.”
International Container Terminal Services Inc., the biggest port operator, climbed 3.1 percent to P148.50, while JG Summit Holdings Inc. of industrialist John Gokongwei gained 2.3 percent to P65.50
Bank of the Philippine Islands, the third-largest lender in terms of assets, rose 1.5 percent to P81.90, while Jollibee Foods Corp., the largest fast-food chain, added 1.4 percent to P289.
The rest of Asian markets fell Thursday with Hong Kong suffering a second straight day of losses as investors fret over the impact of protests in the city and plans to introduce a controversial law allowing extradition to China.
Uncertainty over the China-US trade saga and soft inflation data out of Washington added to the selling, though oil prices bounced from five-month lows after a report of an incident involving a tanker in the Gulf of Oman.
Hong Kong’s Hang Seng Index led losses after Wednesday’s demonstrations against a planned extradition law that protesters fear will entangle people in China’s courts and hammer the city’s reputation as an international business hub.
While the protests have subsided for now the market was down 0.8 percent in the afternoon, extending the previous day’s 1.7 percent loss.
Tokyo ended 0.5 percent lower, Singapore fell 0.2 percent and Taipei fell 0.5 percent. Sydney was also lower, though Shanghai and Wellington ended up after late rebounds.
With Beijing backing the law, observers warned the issue could have a detrimental effect on the mainland.
“Beijing’s push for this extradition bill could prove costly as investors and businesses value Hong Kong’s autonomy,” said OANDA senior market analyst Edward Moya.
“Uncertainty with Hong Kong’s autonomy will dampen business prospects and put a further strain on Chinese growth. If the US and Europe become involved it could complicate relations and future trade deals.”
Hong Kong has also come under pressure from the international community, with the European Union saying the proposed law had “potentially far-reaching consequences for Hong Kong and its people, for EU and foreign citizens, as well as for business confidence in Hong Kong”.
The amount banks charge each other to borrow cash—known as the Hong Kong Interbank Borrowing Rate (Hibor)—extended its recent rise to a fresh 11-year high Thursday as cash is sucked out of the financial system. The gains saw the local dollar hit a six-month high. With AFP