Market climbs; PLDT, Converge up

The stock market rose slightly Thursday on expectations the government will shortly ease lockdown restrictions further in Metro Manila due to lower COVID-19 cases.

The Philippine Stock Exchange Index added 18.77 points, or 0.3 percent, to 6,952.88 on a value turnover of P9.9 billion. Gainers beat losers, 115 to 78, with 51 issues unchanged.

Noodles maker Monde Nissin Corp. advanced 5.5 percent to P18.80, while fiber internet service provider Converge ICT Solutions Inc. climbed 5.3 percent to P40.

Universal Robina Corp. of the Gokongwei Group, the biggest snack food maker, rallied 4.2 percent to P135.90, while PLDT Inc., the biggest telecommunications firm, rose 3 percent to P1,680.

Equity markets In Asia mostly rose Thursday after the previous day’s retreat, though investors remained worried about surging inflation leading to interest rate hikes, while the debt stand-off in Washington also frayed nerves.

Shanghai, Sydney, Seoul, Singapore, Wellington, Taipei and Jakarta all rose.

But Hong Kong slipped after a three-day gain and Tokyo retreated after a recent rally to three-decade highs.

The Dow and S&P 500 provided a positive lead, though the unconvincing end to the trading day on Wall Street indicated lingering uncertainty on trading floors.

While expected for most of the year, the prospect that the Federal Reserve and other major central banks will soon begin to remove the ultra-loose monetary policies they put in place at the start of the pandemic has dampened sentiment in recent weeks.

The planned moves come as officials look to keep a lid on inflation, which has soared this year on the back of economic reopenings but has been more persistent than many predicted owing to supply chain problems.

Concerns that banks will have to tighten policy quicker and sooner than hoped come as the global economic recovery shows signs of a slowdown, with a spike in coronavirus infections dragging on sentiment among consumers.

“Growth has clearly hit an air pocket here with concerns about COVID, with the drama going on in Washington right now, the Chinese property sector that has sent tremors to global markets,” Christopher Smart, at Barings, told Bloomberg TV.

“Having said that, the general trajectory of the global economy remains very much where it was earlier this year.”

Data showed China’s factory activity contracted in September for the first time since February 2020 as the country faces an energy crunch that has led to power outages.

While there was little major reaction, analysts warned the problem remained a cause for global concern as it could exacerbate the supply chain crisis and add to inflationary pressures.

Still, Fed boss Jerome Powell told other central bank heads Wednesday that the inflation problem would eventually taper off.

“The current inflation spike is really a consequence of supply constraints meeting very strong demand, and that is all associated with the reopening of the economy—which is a process that will have a beginning, a middle and an end,” he told a virtual panel including the bosses of the European Central Bank, Bank of Japan and Bank of England. With AFP