Share prices rallied Wednesday on the removal of curfew hours and easing COVID-19 restrictions in Metro Manila following a drop in the daily infection rate.
The Philippine Stock Exchange Index rose 78.71 points, or 1.1 percent, to 7,184.72 on a value turnover of P7.5 billion. Gainers beat losers, 104 to 99, withy 46 issues unchanged.
Bank of the Philippine Islands of the Ayala Group,, the third-biggest lender in terms of assets, climbed 3.4 percent to P91, while Aboitiz Power Corp. of the Aboitiz Group advanced 4.8 percent to P34.
AllDay Marts Inc., the grocery chain owned by the Villar Group, soared 50 percent in its market debut to P0.90, while SM Prime Holdings Inc. of the Sy Group gained 3.6 percent at P34.70.
The rest of Asian markets drifted Wednesday with investors biding their time ahead of a hotly anticipated Federal Reserve meeting, though Hong Kong and Shanghai were again weighed by concerns about China’s economy as leaders struggle to contain a new wave of COVID infections.
A third straight day of records for Wall Street’s three main indexes and a first all-time high for 21 years in Paris—fanned by strong earnings—were unable to provide much inspiration in the face of long-running fears about surging inflation and the prospect of higher interest rates.
With prices rising at rates not seen for years, central banks are being forced to row back the vast financial support put in place at the start of the pandemic, which has been credited with sending equities to records and helping the economic recovery.
While some have already lifted borrowing costs or started to tighten the purse strings, the main focus is on the Fed, which is expected to say Wednesday when it will begin tapering its own massive bond-buying program, with particular attention on rates.
“There does appear to be a growing recognition amongst a rising number of Fed officials that inflation is likely to be much more persistent than was previously envisaged,” said CMC Markets analyst Michael Hewson.
“It is clear that the Fed’s narrative for acting has shifted away from the labor market, and there is a wider acknowledgement about rising inflation risk.
“However, once the taper timetable has been outlined Fed officials will then come under increasing pressure to outline a timetable for an increase in interest rates, a move that Fed Chair Jay Powell has already indicated is not imminent and could be as long as a year away.”
The Bank of England is seen as likely to announce a rate rise at its meeting Thursday.
Sydney, Wellington, Taipei and Jakarta all rose but Singapore, Bangkok, Mumbai and Seoul retreated.
Hong Kong and Shanghai slipped, with the latest COVID spike in several parts of China forcing some cities into fresh lockdowns that have led to worries about the impact on already strained supply chains in the world’s number two economy.
Stresses in the country were highlighted Monday when the government urged people to stock up on daily necessities and said authorities should take steps to ensure adequate food supplies as containment measures were introduced. With AFP