Stock market rises again; Jollibee, GT Capital climb

The stock market extended a rally Tuesday for the second straight day in anticipation of more relaxed quarantine rules in Metro Manila and most of the country starting next month.

The Philippine Stock Exchange Index surged 93.45 points, or 1.6 percent, to 6,112.71 on a value turnover of P8.2 billion. Gainers beat losers, 112 to 98, with 46 issues unchanged.

Jollibee Foods Corp., the largest fast-food chain, jumped 9.3 percent to P169, while GT Capital Holdings Inc. of the Ty Group advanced 6.1 percent to P434.

Major property developer Ayala Land Inc. climbed 5 percent to P31.35, while Bank of the Philippine Islands, the third-biggest lender in terms of assets, rose 3.1 percent to P69.

The rest of Asian and European markets were mixed Tuesday but fading hopes for a pre-election US stimulus and concerns about a fresh surge in virus infections in key economies weighed on sentiment.

With a deadline set for later in the day by House Speaker Nancy Pelosi, analysts said US lawmakers’ weeks of haggling over a much-needed rescue package for the world’s largest economy appear unlikely to bear fruit until after the November 3 vote.

Pelosi’s spokesman said she held talks with Treasury Secretary Steven Mnuchin on Monday and would do so again Tuesday, adding they “continued to narrow their differences.”

But there is a growing consensus that even if they do find an agreement—with Donald Trump saying he is happy to even go past Pelosi’s $2.2 trillion proposal—Senate Republicans would still not be prepared to back a massive spending bill.

“While the two sides seemed to be getting closer to an agreement over the weekend, investors remain nervous that if a new package won’t be accepted before the elections, the consumer economy could be in for a rough holiday season,” said Gorilla Trades strategist Ken Berman.

Edward Moya of OANDA added: “All signs point to no deal until January.”

“It seems politicians are determined to show that they are trying to get the next additional stimulus package done, but no one should count on action this year.” 

All three main indexes on Wall Street ended more than one percent down. 

And while Asia fared better, traders remain cautious. Tokyo, Hong Kong, Sydney, Taipei, Singapore, Jakarta and Bangkok all fell, though there were gains in Shanghai, Mumbai, Seoul and Wellington.

London and Frankfurt opened in the red but Paris edged up.

The need for a stimulus is increasing as figures show fresh infections across the US, fueling concerns about the reimposition of economically damaging containment measures.

That comes as numerous European countries have been forced to put new targeted lockdowns in place as they struggle to contain a second wave.

Investors are also keeping tabs on post-Brexit trade talks, with Britain welcoming signals that the European Union was ready to intensify them but saying its commitments did not yet go far enough to restart face-to-face negotiations. With AFP