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Friday, March 29, 2024

Stocks up slightly; SM Prime gains

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The stock market rose slightly Friday to snap a three-day decline on optimism over the US-China trade talks.

The Philippine Stock Exchange Index added 10.81 points, or 0.1 percent, to 7,801.72 on a value turnover of P5.7 billion. Losers, however, edged gainers, 85 to 81, with 59 issues unchanged.

SM Prime Holdings Inc. of the Sy Group climbed 2 percent to P40.80, while PLDT Inc., the biggest telecommunications firm, advanced 1 percent to P1,052.

Metro Pacific Investments Corp., which is into toll roads, water and electricity distribution, hospitals and infrastructure, fell 3.7 percent to P3.66, while Universal Robina Corp., the largest snack food maker, declined 3 percent to P136.

Meanwhile, optimism over the China-US trade talks kept Asian markets buoyant on Friday, with investors betting the two will eventually sign a partial deal, though they remain nervous as next week’s deadline for fresh tariffs draws closer.

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Sentiment across trading floors has ebbed and flowed through the week as observers try to gauge the state of play in the long-running negotiations, with both sides making positive, then negative comments on the outlook.

Donald Trump caused upheaval by saying he would be happy if a pact was not signed until after next November’s elections, reimposed tariffs on Argentina and Brazil and threatened France with 100 percent levies over a digital tax.

The passage of a House of Representatives bill in support of minority Uighurs in China also riled a Beijing still angry at Trump’s decision to pass a law backing Hong Kong protesters.

But talks appear back on track after reports US officials were hopeful an agreement would be signed, while the president said Thursday things were “moving along well.”

The latest soundings allowed investors to return to the buying that has helped propel global markets for weeks, sending Wall Street to multiple records.

China on Friday offered its latest olive branch, saying it would waiver tariffs on “some” imports of key US soybean and pork imports, providing extra support to traders.

Hong Kong climbed more than one percent, Shanghai and Sydney added 0.4 percent, while Tokyo, Singapore, Wellington, Bangkok and Jakarta each gained 0.2 percent.

Seoul jumped more than one percent and Taipei edged up 0.1 percent but Mumbai slipped 0.4 percent.

“It’s been rather a strange week for global equity markets,” said Michael Hewson at CMC Markets UK. “Moving from an expectation that we could well see some movement on trade between the US and China in the next couple of weeks, to the prospect that any solution may well not happen until after the next presidential election.

“As a result of these mixed signals investors appear to be taking a more cautious view as to what may happen next.”

Traders remain on edge just over a week until December 15—the day on which the US is due to impose tariffs on more China goods.

“Things are looking modestly positive, but that can change on a dime,” Michael Reynolds, investment strategy officer at Glenmede Trust, told Bloomberg News. With AFP

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