The stock market rose Thursday on select buying as investors pinned their hopes on looser restrictions and localized lockdowns instead of wider containment to curb the COVID-19 spread.
The Philippine Stock Exchange Index gained 48.72 points, or 0.7 percent, at 6,834.66 on a value turnover of P6.9 billion. Gainers beat losers, 110 to 86, with 58 issues unchanged.
PLDT Inc. the biggest telecommunications firm, advanced 3.6 percent to P1,532, while Aboitiz Power Corp. of the Aboitiz Group climbed 3.2 percent to P29.30.
Puregold Price Club Inc. of retail tycoon Lucio Co increased 3.1 percent to P42.95, while AC Energy Corp. of the Ayala Group added 1.3 percent to P9.99.
The rest of Asian markets were mixed Thursday, with fresh fears about China’s crackdown on tech firms offsetting optimism about the global recovery outlook and easing COVID fears.
While Wall Street provided a tepid lead, the day got off to a good start with equities extending a recent rally as investors prepared themselves for the release of key US jobs data later in the day.
But sentiment was given a jolt after news emerged that Chinese regulators had summoned ride-hailing giant Didi Chuxing and 10 other car platforms to give them a dressing down in the latest move against tech firms it sees as gaining too much power.
Officials demanded the firms, which also included the ride-hailing arm of major services app Meituan, cease “disorderly expansion” and “vicious competition” tactics.
They were told in a meeting Wednesday that the industry suffered from poor behavior including recruiting unqualified drivers and “shifting the risks of operations onto drivers,” the transport ministry said in a statement.
The firms were ordered to investigate internal problems and “immediately rectify” poor behavior, while ride-hailing platforms were also told to reduce the cut they take from transactions and protect passengers’ personal data.
The move follows a series of measures against Chinese tech firms as well as other sectors including private tuition, property and video games.
The news rattled investors.
Hong Kong fluctuated, closing up after briefly falling into negative territory from a rise of more than one percent earlier in the day. Meituan remained in the green.
The Hang Seng Index as well as Shanghai’s composite index had been supported by the People’s Bank of China’s decision to provide tens of billions of dollars in low-cost funding to lenders to help them offer more support to small and medium-sized companies.
Tokyo, Shanghai, Wellington, Mumbai, and Bangkok were also up but Sydney, Singapore, Seoul, Taipei, and Jakarta fell.
There is still general confidence on trading floors, helped by Federal Reserve boss Jerome Powell last week indicating that while the bank intends to start tapering its ultra-loose monetary policy, it would do so cautiously.
He also suggested interest rates will remain at record lows for a period of time afterwards, though he gave no timeframe. With AFP