The stock market rose for the third straight day Thursday, taking its cue from the the rest of Asia following a surge on Wall Street overnight.
The Philippine Stock Exchange Index added 17.51 points, or 0.3 percent, to 6,884.77 on a value turnover of P6 billion. Gainers beat losers, 97 to 76, with 57 issues unchanged.
Jollibee Foods Corp., the biggest fast-food chain, advanced 5.4 percent to P184, while BDO Unibank Inc., the largest lender in terms of assets, climbed 3.1 percent to P141.
PLDT Inc., the biggest telecommunications company, increased 2.8 percent to P1,043, while conglomerate Ayala Corp. rose 1.7 percent to P677.
The rest of Asian markets rallied, with confidence buoyed by global stimulus measures to mitigate the economic impact of the coronavirus.
After last week’s rout—the worst since the financial crisis—equities have enjoyed a revival over the past few days as governments and central banks kick into gear in the face of recession warnings.
And while the worldwide death and infected toll continues to rise, China—the center of the outbreak—is slowly grinding back to life after weeks of lockdown and quarantine that has battered the economic superpower.
In a bid to support economic growth the Federal Reserve on Tuesday slashed interest rates, with similar moves coming from Australia and Malaysia’s central banks.
Canada later joined the party and AxiCorp’s Stephen Innes said its reference to the cut being “in coordination with other G7 central banks and fiscal authorities” suggested the group were likely working more closely than thought.
Traders are now keeping an eye on the European Central Bank’s policy meeting next week as well as the Bank of England, Reserve Bank of New Zealand and Swiss National Bank.
Meanwhile, US lawmakers announced a rare bipartisan agreement to pass $8 billion in emergency spending to combat the health and economic fallout of the disease.
And the International Monetary Fund said it had $1 trillion in overall financing capacity, including $50 billion available without a formal program, and $10 billion in no-interest funds for the poorest countries.
The move to action has lifted spirits on trading floors, helping take a bite out of last week’s losses.
Tokyo, Sydney, Seoul and Taipei ended more than one percent higher, while Shanghai, Bangkok and Wellington each gained two percent. Hong Kong was up a similar amount in afternoon trade, while Mumbai added 1.1 percent in early trade. Singapore added 0.2 percent.
The advance followed a surge on Wall Street that saw all three main indexes wipe out the previous day’s steep losses, with analysts citing Joe Biden’s strong Democratic primary performance as providing help.
The former vice president is seen as a more market-friendly option than his main rival Bernie Sanders in a run-off against Donald Trump.
While the virus continues to grip China, Bloomberg Economics said the economy—a crucial driver of world growth—was likely running at 60-70 percent of capacity last week as authorities appear to be getting a handle on the crisis, providing dealers with a little more cheer. With AFP
