Stocks rose Tuesday on mild profit taking after a two-day slump, with investors still edgy over a renewed spike in oil prices.
The Philippine Stock Exchange Index added 52.34 points, or 0.8 percent, to 7,008.94 on a value turnover of P6.7 billion. Losers, however, edged gainers, 81 to 77, with 60 issues unchanged.
International Container Terminal Services Inc., the biggest port operator and owned by tycoon Enrique Razon Jr., rose 3.4 percent to P227.80, while BDO Unibank Inc., the largest lender in terms of assets, also climbed 3.4 percent to P130.40.
Manila Electric Co., the biggest retailer of electricity, advanced 3 percent to P369.80, but Jollibee Foods Corp., the largest fast-food chain, fell 3.3 percent to P205.
Meanwhile, oil prices extended their rally Tuesday on supply worries as European leaders debated banning imports from Russia, while the rest of Asian equities advanced despite a tepid Wall Street lead and the prospect of a sharper hike in US interest rates.
While Wall Street ended on a negative, equities remained resilient in Asia.
Hong Kong was back on the rise, jumping more than three percent, after last week’s blockbuster surge as Alibaba rocketed about 11 percent on the back of news it had ramped up a planned share buyback on optimism a tech crackdown by Beijing was close to an end.
Tokyo returned from a long weekend to pile on more than one percent, helped by a drop in the yen to a new six-year low against the dollar, which helps exporters.
Shanghai, Sydney, Seoul, Singapore, Mumbai, Jakarta, Bangkok and Wellington also rose, while Taipei was flat.
China Eastern Airlines sank in both Shanghai and Hong Kong after one of its jets crashed in China while carrying 132 people.
Both main crude contracts started the week by soaring more than seven percent Monday as EU nations discussed following Washington and putting an embargo on Russian energy imports over its war in Ukraine.
Some members are pushing to ramp up pressure on Russian President Vladimir Putin with more sanctions, though others, including Germany—which still relies on Moscow’s fuel—have been reluctant to target key sectors.
Adding to the pressure, Saudi Arabia warned that Yemeni rebel attacks on its oil facilities pose a “direct threat” to global supplies, after Red Sea facilities belonging to giant Saudi Aramco were targeted.
The jump in oil prices has been a driver of turmoil on world markets in recent weeks as demand surges owing to economic re-openings just as supplies are strained.
That, along with a spike in the cost of other key commodities, such as metals and wheat, caused by the war, has sent inflation rocketing and caused a headache for central banks already trying to wind down pandemic-era monetary policies.
“It seems energy traders are growing more confident that supply shortages are just around the corner,” warned OANDA’s Edward Moya.
“China’s decision to avoid broad lockdowns is also helping oil prices as the short-term crude demand hit should be temporary. The oil rollercoaster ride remains a geopolitical trade and right now it seems the risks are growing and that could push crude prices higher.” With AFP
