Stocks up; SM Prime advances

Share prices rose slightly higher Wednesday in light bargain hunting, but many investors opted to stay in the sidelines on lack of catalysts to support a major rally.

The Philippine Stock Exchange Index added 22.63 points, or 0.4 percent, to 5,864.23 on a value turnover of nearly P5.5 billion. Losers, however, edged gainers, 98 to 91, with 49 issues unchanged.

SM Prime Holdings Inc. of the Sy Group climbed 3.2 percent to P29.40, while Cemex Holdings Philippines Inc. jumped 11.5 percent to P1.65.

Dito CME Holdings Corp., the third major telecommunications player, however, fell 1.8 percent to P4.90, while Bank of the Philippine Islands, the third-biggest lender in terms of assets, declined 1.5 percent to P64.

The rest of Asian markets, meanwhile, mostly fell Wednesday following a chaotic US presidential debate in which Donald Trump again suggested the election could be fraudulent, although hopes for a second stimulus out of Washington provided a little support.

Another round of healthy Chinese data also lifted optimism, but the ever-present gloom of rising virus infections and deaths continues to dampen the mood on trading floors as dealers fret over the re-imposition of containment measures in key economies.

Hong Kong rose 0.8 percent, helped by data showing factory activity in China improved in September, indicating that the recovery in the world’s number two economy was on track.

Mumbai, Taipei and Wellington also edged up.

There were steep losses in Tokyo, down more than one percent, and Sydney, more than two percent, while Shanghai, Singapore, Jakarta and Bangkok were also in the red.

Trump and Joe Biden traded personal barbs in the first of three debates ahead of the November 3 vote, with observers saying the president needed a strong showing as he trailed in most national and battleground polls.

The much-anticipated match-up, however, descended almost immediately into a shouting match, with little of substance emerging from either man.

When asked if they pledged to urge calm and refrain from declaring victory if the election result is not immediately known, Biden said “yes,” while Trump would not commit, saying that if he saw “tens of thousands of ballots being manipulated, I can’t go along with that.”

The president’s claims about voter fraud have raised concerns among investors that the result could be drawn out and fuel uncertainty.

Most observers were left disappointed, and Aaron Kall, a presidential debate specialist at the University of Michigan, told AFP: “This will go down as one of the worst debates in history.”

“The market is starting to price in potentially a blue sweep,” Jimmy Chang, at Rockefeller & Co LLC, told Bloomberg TV, referring to Democrats winning the White House and both houses of Congress.

He added that while such a scenario could lead to higher taxes, it would also likely see a bigger stimulus package being passed.

On Tuesday, a top aide to Democratic House Speaker Pelosi said the lawmaker had spoken for a second straight day with Treasury Secretary Steven Mnuchin, and the two agreed to continue negotiating, raising hopes they could break a months-long impasse. With AFP