Share prices surged Wednesday on hopes that Russia will not invade Ukraine after Moscow said some of its troops on the countries’ border had started pulling back.
The Philippine Stock Exchange Index jumped 142.88 points, or 2 percent, to 7,452.82 on a value turnover of P9.5 billion. Gainers overwhelmed losers, 123 to 63, with 49 issues unchanged.
Leading fiber broadband provider Converge ICT Solutions Inc. advanced 8 percent to P27.55, while SM Prime Holdings Inc. of the Sy Group climbed 5.5 percent to P38.50.
Casino operator Bloomberry Resorts Corp., owned by port tycoon Enrique Razon Jr., rose 5.5 percent to P6.55, while major property developer Ayala Land Inc. of the Ayala Group added 2.9 percent to P38.90-
The rest of Asian markets rebounded Wednesday. While not verified, the claims by Russia of a troops pullback provided some much-needed relief for investors, who had grown increasingly fearful of a conflict in Eastern Europe after Western powers warned for days that an attack was imminent.
While politicians remained wary, investors jumped on the positive developments.
All three Wall Street indexes jumped after three days of hefty losses, which were also fanned by inflation worries.
And Asia built on the gains.
Tokyo and Seoul piled on around two percent, while Hong Kong, Sydney, Wellington and Taipei jumped more than one percent each. Shanghai, Singapore, Mumbai and Jakarta were also up.
The news also helped traders brush off another forecast-busting surge in the US producer price index that some warned could indicate another painful jump in consumer inflation down the line.
Equities were sent into a spiral after a top US security adviser said Friday that Russian President Vladimir Putin could send troops into Ukraine any day, adding to a range of risk-off issues plaguing the markets including soaring prices, the end of central bank financial support and the coronavirus pandemic.
But the mood lifted Tuesday after Russia’s defense ministry said some of the more than 100,000 soldiers amassed around Ukraine in recent weeks had started to return to their barracks.
Then, after three hours of talks, Putin and German Chancellor Olaf Scholz held a news conference in which the Russian leader confirmed a “partial pullback of troops” and said he was willing to look for diplomatic solutions to the crisis, adding that “of course” he did not want war.
“We are ready to work further together. We are ready to go down the negotiations track,” Putin said. “We want to resolve this issue now, right now or in the near future, through negotiations, peaceful means.”
He said he hoped Western leaders would listen to his concerns about NATO’s expansion towards Russia’s border and possible Ukraine membership.
Moscow on Wednesday announced troops were also leaving Crimea after holding military exercises.
Still, while Joe Biden said the United States was “ready with diplomacy,” he warned Putin’s soldiers “remain very much in a threatening position.”
Crude rebounded after tanking more than three percent on Tuesday as the easing of Russia-Ukraine tensions tempered fears about supplies at a time when demand is soaring, which is adding to inflationary pressures. With AFP
