Stocks climbed Thursday on bargain hunting ahead of the afternoon meeting of the Monetary Board, as investors opted for selective buying in the face of the war in Ukraine and volatile oil prices in the world market.
The Philippine Stock Exchange Index rose 73.18 points, or 1 percent, to 7,082.61 on a valuer turnover of P7.8 billion. Gainers beat losers, 108 to 64, with 58 issued unchanged.
The policy-making body of Bangko Sentral ng Pilipinas in a meeting after the trading kept the record-low policy rate of 2 percent amid the manageable inflation environment.
Fiber broadband provider Converge ICT Solutions Inc. advanced 3.7 percent to P27.80, while PLDT Inc., the biggest telecommunications firm, gained 2.6 percent to P1,831.
SM Investments Corp. of the Sy Group increased 2.1 percent to P885, while major propeerty developer Ayala Land Inc. of the Ayala Group rose 1.8 percent to P36.
The rest of equity markets in Asia were mixed Thursday as investors contemplate the impact of surging inflation and central bank plans to sharply hike interest rates, while oil prices dipped but remain elevated on fears of further Russia sanctions that could hit already thin supplies.
The recent rally across equities over the past week appears to have run its course for now as investors nervously track developments in the Ukraine war, with efforts to reach a diplomatic solution crawling along.
After a negative lead from Wall Street, Asia fluctuated.
Tokyo, Sydney, Singapore, Bangkok and Jakarta edged up but Hong Kong, Shanghai, Seoul, Wellington, Taipei and Mumbai were all down.
And the Moscow stock exchange resumed trading of some shares as it continued re-opening after a month-long suspension over Russia’s invasion of Ukraine.
Trading resumed for only around 30 of the largest companies that make up the ruble-denominated MOEX Russia Index, which saw early gains of more than 10 percent.
All eyes are on meetings this week of NATO, where Joe Biden and other leaders are expected to discuss further punishing Moscow for the month-long invasion, while the European Union is still debating a possible embargo on Russian oil.
A warning from Russia that repairs at a terminal near a Black Sea port may take up to two months, causing a drop in exports of about one million barrels per day, added to supply worries.
Both main contracts rallied more than five percent Wednesday—with Brent back above $120—and they continued to advance in early Asian business before falling back in the afternoon.
There was a little support from speculation about progress in the Iran nuclear deal, which could lead to the release of Tehran’s crude back onto world markets.
Will Sungchil Yun of VI Investment Corp told Bloomberg News: “There are worries around both supply as well as demand, which may keep prices rather volatile.
“But if fresh sanctions are slapped on Russia, we’re looking at another leg up.”
The surge in oil markets has fanned already sky-high inflation—it is at a 40-year high in the United States and a 30-year high in Britain—putting pressure on central banks to tighten monetary policy before prices run out of control. With AFP
