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Friday, March 29, 2024

Market rallies; Cemex advances

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The stock market rallied Friday in step with the rest of Asia, with investors cheered by a report that the US was considering lifting tariffs on China as officials look to hammer out a trade deal.

The Philippine Stock Exchange Index surged 119.92 points, or 1.5 percent, to 8,047.12 on a value turnover of P8.4 billion. Gainers beat losers, 111 to 76, with 59 issues unchanged.

Cemex Holdings Philippines Inc. jumped 18 percent to P2.49 after the government imposed a provisional safeguard duty of P8.40 per 40-kilogram bag of imported cement to protect the local industry amid the surge of imports.

International Container Terminal Services Inc., the biggest port operator, advanced 3.8 percent to P108, while Jollibee Foods Corp., the largest fast-food chain, also climbed 3.8 percent to P324.80.

GT Capital Holdings Inc., which has interests in banking, automotive manufacturing, property development, utilities and infrastructure, gained 3.1 percent to P1,050.

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The rest of Asian markets advanced Friday as another broadly positive week drew to a close.

Optimism that the world’s top two economies are on course to reach a deal ending their long-running trade row has helped boost equities across the world this year.

And while news that the US was carrying out a criminal probe into Chinese  tech giant Huawei caused a wobble Thursday, the rally resumed after the Wall Street Journal story on tariff-lifting broke.

The paper reported  Treasury Secretary Steven Mnuchin had raised the idea with Trade Representative Robert Lighthizer of removing some or all levies on Beijing in return for structural reforms.

It said the move was part of a bid to reassure markets and bolster the odds of a bigger trade deal, ending a months-long saga that is beginning to impact economies around the world, particularly China.

However, Treasury Department told AFP that no formal recommendation had been made by either Mnuchin or Lighthizer in the talks, which were “nowhere near completion.”

Still, investors remained upbeat.

Hong Kong rose more than one percent and Shanghai ended 1.4 percent higher while Tokyo jumped 1.3 percent.

Sydney added 0.5 percent, Seoul gained 0.2 percent and Singapore put on 0.8 percent, while there were also advances in Wellington and Taipei.

“The US government has said that there have been no formal talks to scale back tariffs, but the market saw the half glass full as the reports signal that concessions are in the works,” said Alfonso Esparza, senior market analyst at OANDA.

However, there was still skepticism among analysts, with the two sides still far apart on a number of issues, particularly regarding intellectual property.

“Certainly evidence that the administration is approaching a deal would be good news,” Laura Rosner, senior economist at MacroPolicy Perspectives, said. “We’ve heard noise around trade policy before though, so I would want to make sure the progress happens and sticks.” With AFP

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