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Thursday, March 28, 2024

Stocks rise; AC Energy, ICTSI advance

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The stock market bounced back Tuesday after fresh records on Wall Street overnight and easing COVID-19 restrictions in the Philippines.

The Philippine Stock Exchange Index added 40.56 points, or 0.6 percent, to 7,252.10 on a value turnover of P6.4 billion. Losers, however, beat gainers 110 to 89, with 52 issues unchanged.

AC Energy Corp. of the Ayala Group climbed 5.5 percent to P11.98, while sister unit Globe Telecom Inc. advanced 4.2 percent to P3,148.

Jollibee Foods Corp., the biggest fast-food chain, rose 3.6 percent to P235.20, while International Container Terminal Services Inc. of tycoon Enrique Razon Jr., the largest port operator, gained 3 percent to P189.

Asian markets mostly rose on Tuesday, with healthy corporate earnings overshadowing ongoing concerns about inflation, while progress in Washington on Joe Biden’s big-spending economic plans also provided support.

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However, a fresh virus outbreak in China, where more than four million have now been put into lockdown, revived concerns about the world’s number two economy and authorities’ zero-COVID policies.

The S&P 500 and Dow both ended at new peaks, with tech firms lifted by a surge in electric car maker Tesla to the trillion-dollar mark ahead of the release of profit reports this week from business titans including Apple, Amazon, Microsoft and Twitter.

Facebook became the latest firm to unveil bumper earnings, posting a $9-billion profit in the third quarter and reinforcing optimism on trading floors following a string of reports that have seen upbeat commentary on consumer demand.

Tokyo led gains, piling on 1.8 percent, helped by reports that Japan’s ruling Liberal Democratic Party will likely win a majority in the upcoming general election.

Sydney, Singapore, Seoul, Taipei, Mumbai, Bangkok and Jakarta also rose.

Hong Kong and Shanghai dropped following news that developer Modern Land had missed a bond payment in the latest sign of stress in China’s property sector, with focus on an upcoming deadline for China Evergrande.

Reports that Evergrande had met obligations on a note at the end of last week, just before a Saturday cut-off, boosted sentiment but with several more to go before the year’s end, there is a feeling the inevitable default is merely being delayed. 

OANDA’s Jeffrey Halley raised concerns about the possible impact of the latest Delta outbreak in China, with fears over fresh lockdowns as the country follows its zero-COVID strategy.

On Tuesday, officials put the city of Lanzhou, with a population of four million, under lockdown, with residents told not to leave home except in emergencies.

“The arrival of Delta in COVID-zero countries in other parts of the world suggests challenges ahead, even for China,” he said in a note. “If it spreads rapidly, some severe lockdowns could follow. That would complicate an already nightmarish scenario for global supply chains under stress.”

Developments in Washington are being closely followed after Biden said Monday he hoped Democrats would strike a deal on two massive spending packages this week. With AFP

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