Market climbs; SM Prime gains

The stock market rose Thursday, buoyed by a government report that the gross domestic product expanded 6.2 percent in the third quarter after a sluggish performance in the first half of the year.

The Philippine Stock Exchange Index gained 47.93 points, or 0.6 percent, to 8,073.81 on a value turnover of P5.1 billion. Gainers beat losers, 93 to 81, with 61 issues unchanged.

The GDP growth put the economy on track to achieve the low end of the government’s 2019 target range of 6 percent to 7 percent. The third-quarter figure also brought the average economic growth in the first three quarters to 5.8 percent, near the low end of the target range.

SM Prime Holdings Inc. of the Sy Group climbed 3.1 percent to P40, while parent SM Investments Corp. added 1.2 percent to P1,070.

Metro Pacific Investments Corp., which is into toll roads, water and electricity distribution, hospitals and infrastructure, advanced 1.7 percent to P4.83, but Universal Robina Corp., the biggest snack food maker, dropped 2.9 percent to P150.50.

The rest of Asian markets mostly rose Thursday but investors were on edge after being spooked by speculation the much-anticipated signing of the China-US trade pact had run into a jam.

Wall Street ended flat and Asia struggled in early business but staged a slight recovery as the day wore on.

Tokyo closed 0.1 percent higher, Sydney added one percent and Singapore gained 0.1 percent in the afternoon with Wellington also in positive territory. Seoul, Shanghai and Bangkok were barely moved.

Hong Kong fell 0.4 percent in late trade, after five days of gains, Taipei closed 0.4 percent lower, Jakarta lost more than one percent and Mumbai was off 0.1 percent.

Broad optimism that the economic superpowers would soon complete part one of a wider agreement has been the basis of a rally in global equities for several weeks.

But that confidence was given a slight jolt by reports that a planned meeting between Donald Trump and Xi Jinping to put pen to paper may be put back to December as they iron out some issues and try to find a place to hold the ceremony.

The Financial Times and Wall Street Journal had earlier said the White House was considering dropping existing tariffs on more than $100 billion of imports to seal an agreement.

While officials said the deal is still on track, a seed of doubt was planted in the minds of nervous traders, who have witnessed several false dawns in the past.

“One could take the view that by not committing to meet the original deadline for signing the so-called phase one agreement… it gives more time for a somewhat more comprehensive agreement to be thrashed out—potentially involving a US commitment to wind back some existing tariffs,” said National Australia Bank’s Ray Attrill.

“But markets have understandably jumped the other way, exhibiting a slight loss of confidence that anything more substantial than an agreement not to further lift tariffs—in return for some increase in US agricultural purchases—can be agreed.”

“Traders are all too aware that China can play the long game,” said David Madden, an analyst at CMC Markets UK. “Trump is up for re-election in November 2020, so Beijing (might) have no motivation to wrap things up quickly.”