The stock market extended its gains Friday, as investors picked up blue chip issues that registered a strong financial performance in 2021 despite the pandemic.
The Philippine Stock Exchange Index added 42.23 points, or 0.6 percent, to 7,124.84 on a value turnover of P5.5 billion, Gainers beat losers, 93 to 84, with 52 issues unchanged.
Universal Robina Corp. of the Gokongwei Group, the largest snack food maker, advanced 3.6 percent to P117, while Globe Telecom Inc. of the Ayala Group, the second-biggest telecommunications firm, rose 3 percent to P2,638.
Fiber broadband provider Converge ICT Solutions Inc. climbed 2.5 percent to P28.50, while BDO Unibank Inc. of the Sy Group, the largest lender in terms of assets, was up 1.9 percent to P132.50.
The rest of Asian markets fluctuated on Friday as traders struggled to build on a rally in New York, with focus on the impact of the Ukraine war, surging inflation and Federal Reserve plans to fight it.
The crisis in eastern Europe has forced investors to reassess their outlook for the global economy owing to an expected surge in already soaring prices, which some commentators now warn could lead to recessions and stagflation.
Another rally on tech firms helped Wall Street clock up more healthy gains as data showed filings for US unemployment benefits hit their lowest level since September 1969, while a gauge of business activity hit an eight-month high in March.
That came even as speculation swirls that the Fed will turn more hawkish in its drive to rein in inflation. Tech firms are more susceptible to higher borrowing costs.
Hong Kong was weighed down by ongoing worries that US authorities could still delist Chinese firms traded on Wall Street, dragging the tech sector.
Shanghai, Mumbai, Taipei, Bangkok, and Jakarta also fell, while Tokyo, Sydney, Singapore, and Wellington edged up. Seoul was flat.
Meanwhile, the White House warned it was concerned that Russian President Vladimir Putin could lash out using chemical, biological or even nuclear weapons as he grows increasingly frustrated about his campaign in Ukraine being bogged down.
That comes after US President Joe Biden said earlier this week that the Russian leader’s “back is against the wall” and “the more his back is against the wall, the greater the severity of the tactics he may deploy.”
Still, analysts said the gain on US markets could be attributed to the united front presented in Brussels against Putin by NATO, the G7 and European Union, and hope that a ceasefire can be reached.
The groups unveiled a series of fresh sanctions against Moscow over its invasion, though European nations did not announce a ban on imports of Russian oil, which helped push crude lower Thursday. Both main contracts were barely moved in Friday trade.
Still, the commodity remains elevated and analysts warned it could spike at any time.
“Oil is trading a touch lower after EU leaders could not table unanimous support for a comprehensive Russian energy embargo,” said Stephen Innes of SPI Asset Management. With AFP
