Market nears 7,000 points; MREIT climbs

Stocks inched up Monday closer to 7,000 points, buoyed by a report that COVID-19 cases in Metro Manila were slowing down.

The benchmark Philippine Stock Exchange Index gained 37.29 points, or 0.5 percent, 6,960.89 on a  value turnover of P5.6 billion. Gainers and losers were even at 93 each, with 55 issues were unchanged.

MREIT Inc., the newly-listed  real estate investment trust company of Megaworld Corp., the biggest lessor of office spaces, climbed 4.2 percent to P17.40, while PLDT Inc., the largest telecommunications firm, rose 3.2 percent to P1,692.

DMCI Holdings Inc. of the Consunji Group advanced 5.6 percent to P7.70., while unit Semirara Mining and Power Corp., the biggest coal producer, surged 7.4 percent to P23.95.

Hong Kong stocks, meanwhile, plunged Monday on concerns about troubled property giant China Evergrande, though most other markets in Asia rose after a strong lead from Wall Street.

The crisis at Evergrande, which is drowning in a sea of debt worth more than $300 billion, has roiled markets in recent weeks on fears that its failure could spill over into the wider Chinese economy and possibly further.

The firm said in a statement that the trading halt was called “pending the release by the Company of an announcement containing inside information about a major transaction.”

The news came as reports said   Hopson Development Holdings planned to buy a 51-percent stake in its property services arm.

However, traders remain concerned Evergrande will miss payments on bond obligations, putting it in default.

“There still remains very little visibility from the Chinese Government over Evergrande’s fate, although a slow and steady dismantling of the company appears to be the favored course right now,” said OANDA’s Jeffrey Halley.

Hong Kong stocks, already under pressure owing to concerns about China’s crackdown on a range of industries including tech firms and casinos, sank more than two percent.

Tokyo fell 1.1 percent—a sixth straight loss—while Taipei was also in negative territory.

Still, there were gains in Sydney, Singapore, Wellington, Bangkok, Mumbai and Jakarta. Shanghai and Seoul were closed for public holidays.

Global markets endured a torrid September owing to growing concerns about inflation, spiking virus infections that are hobbling the economic recovery, and political gridlock in Washington that is pushing the United States towards a financially catastrophic debt default.

Meanwhile, Democrats continue to bicker among themselves over Joe Biden’s multi-trillion-dollar infrastructure and social care spending bill, leaving it in limbo.

The Federal Reserve’s plan to wind down its ultra-loose monetary policy and indications that it could hike interest rates as soon as next year have added to the gloom.

The release of US jobs data on Friday will be closely watched for a fresh idea about the health of the world’s biggest economy, with a strong reading likely putting pressure on the Fed to act sooner than later.

“Markets enter the fourth quarter navigating what is perhaps the most uncertain environment of the year,” said Julian Emanuel, a strategist at brokerage BTIG. “The end of 2021 is shaping up to be interesting indeed.” With AFP