Market rises; SM Investments up

Stocks rose slightly Thursday in mixed trading following a positive lead from Wall Street overnight.

The Philippine Stock Exchange Index added 17.22 points, or 0.2 percent, to 7,950.98 on a value turnover of P5.2 billion. Losers, however, beat gainers, 104 to 80, with 51 issues unchanged.

SM Investments Corp. of the Sy Group rose 1.6 percent to P1,030, while banking unit BDO Unibank Inc., the biggest lender in terms of assets, climbed 1.7 percent to P149.30.

JG Summit Holdings Inc. of the industrialist John Gokongwei, however, fell 1.3 percent to P73, while unit Universal Robina Corp., the largest snack food maker, declined 3.9 percent to P151.

Most Asian markets rose Thursday, while the pound was marginally higher as traders await the next Brexit move with the EU expected to extend Britain’s divorce deadline yet again.

While US earnings on Wednesday were a mixed bag, investors remain broadly upbeat after better-than-forecast results so far have soothed worries about the impact of slowing economic growth on companies.

“People were bracing for the worst” for businesses, Yana Barton at Eaton Vance Management said. “So far we’re coming in a little bit better,” she told Bloomberg TV.

In afternoon trade, Hong Kong was up 0.6 percent while Tokyo closed with gains of 0.6 percent.

Seoul added 0.2 percent as dealers brushed off  data showing the South Korean economy grew in the third quarter at a slower pace than expected, putting it on course for the worst annual performance since the global financial crisis.

Sydney, Singapore, Mumbai, Taipei and Jakarta were also well up. Shanghai was marginally lower while Wellington and Bangkok were also in the red.

The positive mood comes as China and the US look on track to sign a mini trade deal next month and set up talks for the next phase of a wider agreement to end their long-running tariffs war.

Hopes that Britain will leave the European Union with a divorce pact have also improved sentiment.

While Boris Johnson failed to push his agreement with the bloc in time to meet the October 31 cut-off date, he did manage to get MPs to agree to it.

EU leaders are expected to grant a three-month extension, in which time the prime minister could hold a general election he hopes will give him enough lawmakers to easily break the Brexit deadlock.  

Sterling, which has seen strong volatility for most of the week, edged up slightly against the dollar Thursday as dealers await their next cue.

“Brexit remains of great concern, and though few developments materialized (Wednesday) the market is maintaining confidence a deal will be coming,” said AxiTrader analyst Stephen Innes.

“Traders are still awaiting the EU decision on whether it will grant a delay until January 31, and under what conditions.”

Oil prices edged down after running up strong gains of more than 2.5 percent Wednesday in response to data showing a slide on US stockpiles as well as a bigger-than-expected fall in gasoline inventories. With AFP