Stocks advance; Globe, Jollibee and URC climb

The stock market rose Tuesday in another round of bargain hunting, after record gains on Wall Street overnight.

The Philippine Stock Exchange Index added 47.73 points, or 0.7 percent, to 6,561.41 on a value turnover of P6.8 billion. Losers, however, edged gainers, 98 to 97, with 50 issues unchanged.

Globe Telecom Inc. of the Ayala Group, the second-biggest telecommunications company, advanced 3.6 percent to P2,082, while Jollibee Foods Corp., the largest fast-food chain, climbed 3 percent to P193.

Universal Robina Corp. of the Gokongwei Group, the biggest snack food maker, increased 2.9 percent to P140.90, but AC Energy Corp. fell 2.3 percent to P9.01.

Asian markets were broadly down Tuesday as investors weighed record gains on Wall Street against fears the resurgent Delta coronavirus variant may put the brakes on the global economic recovery.

Major US indices rebounded overnight from a slow start as bargain hunters stepped up purchases—leaving both the Dow and S&P 500 finishing narrowly positive to extend a streak of record-high closes to a fifth straight day.

Buoyed by Wall Street, Tokyo opened up, before erasing early gains and closing down for a fourth consecutive session as fears over a surge in virus cases dampened hopes for the recovery.

“As long as the number of new cases continues to rise to record highs, investors won’t feel encouraged,” Yoshihiro Ito, senior strategist at Okasan Online Securities, said in a note.

Markets in China also dragged as a regulatory crackdown on private business by Beijing continued to leave investors on edge, with Hong Kong closing at its lowest level in three weeks and Shanghai closing well down.

The outlook for the global recovery was hit by Chinese data this week showing retail sales and industrial production slowing in July, with a rapid recovery threatened by renewed localized virus lockdowns and extensive travel restrictions.

Markets in Seoul and Taipei were down, as was Sydney, where millions remain under coronavirus restrictions with little end in sight as cases tied to the Delta variant soar.

Wellington also ended the day on losses, hit by news that New Zealand would move into a snap three-day lockdown after recording its first case of locally transmitted COVID-19 in six months.

The virus gloom has also hit oil prices, which fell for a fourth straight day prompted by the weak economic data from Beijing.

“As data begins to reflect the full impact of the shutdown in China, investors are worried this negative trend we’re seeing won’t just be a localized issue,” Bart Melek of TD Securities told Bloomberg TV.

“We are moving from expectations of a robust deficit to a potential surplus as the variant continues to halt the growth rate of demand.”

But some cause for optimism may come later in the day stateside, where investors will be closely watching the US retail sales data for signs that the country’s consumer spending remains healthy. With AFP