Stocks rose slightly Wednesday taking their cue on the rest of Asian markets as investors picked up shares that suffered sharp losses in recent sessions.
The Philippine Stock Exchange Index added just 15.61 points, or 0.2 percent, to 6,769.62 on a value turnover of P5.4 billion. Gainers beat losers, 109 to 78, with 46 issues unchanged.
Ayala Corp. of the Ayala Group climbed 2.3 percent to P694, while property unit Ayala Land Inc. advanced 3.4 percent to P32. Unit Globe Telecom Inc., the second-biggest telecommunications firm, gained 2.1 percent at P2,444.
SM Prime Holdings Inc. of the Sy Group, however, fell 1.9 percent to P38.35.
The rest of Asian markets rallied Wednesday, building on a hearty performance on Wall Street and helped by the reopening in China, though analysts continue to warn of near-term volatility caused by surging inflation, rising interest rates and the Ukraine war.
Equities have enjoyed some respite in recent weeks from a painful sell-off caused by central bank monetary tightening—particularly by the Federal Reserve—and a spike in prices that is beginning to hit consumers, raising concerns of an economic slowdown or recession.
A retreat in US Treasury yields provided a lift to New York traders, as did a jump in Chinese firms listed there fueled by growing optimism that Beijing is to ease back on its long-running crackdown against the tech sector.
The improved mood around tech has come after a report this week said China was close to ending a probe into ride-hailing app Didi Global and restoring its main apps this week.
The Wall Street Journal also said investigations into two other firms—Full Truck Alliance and recruitment platform Kanzhun–were coming to a conclusion.
And on Tuesday authorities approved a second batch of 60 games in a further step to lightening their approach in the world’s largest mobile entertainment market.
Citi analysts said the “announcement will also send a positive signal of policy support to the overall China internet sector.”
Market heavyweights rallied in Hong Kong with Alibaba up more than 10 percent, NetEase 5.7 percent higher and Tencent up more than six percent, helping the Hang Seng Index climb more than two percent.
Shanghai, Tokyo, Sydney, Bangkok, Jakarta and Taipei were also in positive territory. But Seoul and Wellington were barely moved while Mumbai dipped.
The moves in Asia came as Beijing relaxes its strict COVID lockdown measures, allowing the world’s number two economy to edge back into life after months.
“The bounce in risk sentiment is due to a more positive China tilt where the outlook is set to brighten up as COVID restrictions ease, and state-owned banks are obliged to increase lending again,” said SPI Asset Management’s Stephen Innes.
“It certainly feels like the tide is turning on the Mainland, though the overall tone still leans more cautiously optimistic, with key emphasis on ‘cautiously’.”
All eyes are on the release Friday of US inflation data for a better idea about the Fed’s plans as it hikes borrowing costs. With AFP
