Stocks rose slightly Thursday on mild bargain hunting and in a cautious reaction to the decision of the US Federal Reserve Board to reduce interest rates overnight by 25 basis points.
The Philippine Stock Exchange Index added 52.36 points, or 0.6 percent, to 8,098.16 on a value turnover of P6.6 billion. Losers, however, beat gainers, 116 to 82, with 44 issues unchanged.
BDO Unibank Inc., the biggest lender in terms of assets, gained 2 percent to P150, while sister unit SM Prime Holdings Inc., the largest integrated property company, advanced 4.1 percent to P38.
Conglomerate JG Summit Holdings Inc. of industrialist John Gokongwei climbed 3.1 percent to P67.25, while Universal Robina Corp., the biggest snack food maker, rose 2.8 percent to P164.
The rest of Asian markets fell on Thursday, tracking losses on Wall Street, after the US Federal Reserve cut rates for the first time in more than a decade but failed to offer a clear signal on future easing.
The move to ease the cost of borrowing was well telegraphed and meant to inoculate against global risks washing onto American shores, but financial markets were whipsawed by confusion over whether another cut would be coming.
Fed chair Jerome Powell told reporters he remains confident in the American economy and sees no sectors ready to go “bust.”
Hong Kong shares were down 0.9 percent in afternoon trade after the city’s de facto central bank matched the Fed’s cut, lowering rates for the first time since 2008.
The move came a day after the release of quarterly GDP figures showing a disappointing 0.6 percent on-year growth in the financial hub.
Authorities attributed “sluggish” domestic demand and a drop in exports to fallout from the year-long US-China trade row, while analysts warn that weeks of civil unrest could threaten further economic headwinds.
Shanghai finished down 0.8 percent a day after the latest round of US-China trade talks wrapped up in the city.
Negotiators on both sides said talks had been “efficient and constructive” but gave no signs of an imminent resolution to the impasse.
“While the bar has been set pretty low for progress, there was a level of disappointment after the meeting,” said Innes.
“The fact that they couldn’t agree on the G-20’s soft-peddled concessions is a worrying sign.”
Tokyo clawed back losses to finish 0.1 percent, after Powell’s statement weighed on equities in key sectors during early trade.
Elsewhere, Seoul rose 0.4 percent and Taipei fell 0.9 percent.
Powell said the Fed decided on a 25-basis-point cut in the rate to “insure against downside risks from weak global growth and trade policy uncertainty.”
US President Donald Trump—who had been loudly calling for a rate cut—wasted no time in attacking on Twitter, saying the move fell far short of the “aggressive rate-cutting cycle” he wanted.
“The Federal Reserve gave off the appearance of a rudderless ship with no specific game plan while doing little more than the bare minimum to appease the market’s expectations,” said VM Markets managing partner Stephen Innes. With AFP
