Market rallies for 4th day; Alliance Global advances

Stocks inched higher for the fourth straight day Thursday in anticipation of government’s move to ease lockdown restrictions in Metro Manila.

The Philippine Stock Exchange Index added 38.33 points, or 0.6 percent, to 6,718.51 on a value turnover of P5.3 billion. Losers, however, beat gainers, 95 to 88, with 46 issues unchanged.

Emperador Inc. of tycoon Andrew Tan, the biggest liquor producer, climbed 6.2 percent to P17, while parent Alliance Global Group Inc. advanced 8 percent to P10.60.

JG Summit Holdings Inc. of the Gokongwei Group rose 3.5 percent to P62.80, while Converge ICT Solutions Inc., a fiber internet service provider, gained 2.8 percent to P27.95.

The rest of Asian markets fell on Thursday following a second straight day of losses on Wall Street in response to Federal Reserve minutes indicating it could begin withdrawing its huge financial support by the end of the year.

Expectations of an end to the largesse that helped drive a global equity rally for more than a year added to the already somber mood on trading floors caused by the fast-spreading COVID Delta variant, which is forcing a re-evaluation of the economic recovery as fresh curbs are put in place.

The sell-off on Wall Street filtered through to Asia.

Hong Kong fell more than two percent with Tencent adding to the pressure after warning of more moves by Beijing against tech firms, having already unveiled a series of measures in recent weeks. Tencent sank more than three percent, while rival and market heavyweight Alibaba dived more than five percent to a record low.

Tokyo and Singapore also shed more than one percent with Taipei and Jakarta off more than two percent. Seoul lost 1.9 percent and there were also retreats in Shanghai and Sydney.

Still, Wellington added almost two percent after authorities said they had achieved a breakthrough in tracing the source of a virus outbreak that plunged New Zealand into lockdown.

Concerns about China’s ongoing crackdown on tech companies also continue to play on sentiment, with gaming giant Tencent warning of further moves by Beijing to tighten its grip on the sector.

After chalking up record highs on numerous occasions in recent weeks, New York’s main indexes ended in the red again Wednesday after the minutes from the Fed’s July meeting showed most board members agree on tapering monetary policy in the next few months.

The remarks come after a string of data showed the world’s top economy was well on the recovery track—particularly employment with more than 1.8 million new jobs created in June and July, and inflation running at multi-year highs.

There has been a worry on markets for some time that the blockbuster economic rebound could fan a surge in prices that could get out of control if the Fed did not act in time.

“Most participants” at the meeting “judged that it could be appropriate to start reducing the pace of asset purchases this year,” the minutes said, though they did also show some were hesitant not to knock the recovery off course by moving too early or quickly.  With AFP