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Friday, March 29, 2024

Stocks climb to end 6-day slump

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The stock market rose Thursday on bargain-hunting to snap a six-day slump, with investors picking up some blue-chip issues that fell sharply in previous trading sessions.

The Philippine Stock Exchange Index surged 92.06 points, or 1.2 percent, to 7,652.53 on a value turnover of P6.2 billion. Losers, however, beat gainers, 109 to 74, with 57 issues unchanged.

Speculative issue Now Corp., which is bidding to become the third major telecommunications company in the country, jumped 23.7 percent to P11.38, while Bank of the Philippine Islands, the third-biggest lender in terms of assets, advanced 5.3 percent to 99.

DMCI Holdings Inc. of the Consunji family climbed 3.7 percent to P10.66, while BDO Unibank Inc., the biggest bank, gained 2 percent to P128.50.

The rest of Asian markets were mixed Thursday with traders concerned about the China-US trade deal and Donald Trump’s summit with Kim Jong Un, while automakers were hit by news Washington was considering huge tariffs on vehicle imports.

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Investors went into selling mode despite minutes from the Federal Reserve’s latest policy meeting that showed the central bank was less hawkish on interest rates than previously thought.

The selling is a far cry from the start of the week when equities rallied on news that top officials from China and the United States had agreed to pull back from imposing levies on billions of dollars of goods, averting a potentially damaging trade war.

But since Monday’s gains, Trump has voiced his displeasure at that agreement and also raised the possibility that a historic summit with North Korean leader Kim on June 12 could be delayed or called off.

A key aide to Kim on Thursday hit out at comments from Vice President Mike Pence and warned the talks could be cancelled.

Japan’s Nikkei was the biggest loser, shedding more than one percent in the morning session as the yen surged against the dollar to its highest level in nine days.

As the latest developments in fuel uncertainty, investors have shifted into the Japanese unit, which is seen as a safe haven.

Adding to selling in the greenback were the Fed minutes, which showed it may be willing to let inflation run slightly higher and above its two percent target, as long as the spikes were temporary. The comments soothed worries about a sharp hike in borrowing costs, which have been needling markets for several months.

But while the minutes lifted Wall Street, Asian investors were harder to please.

Hong Kong was flat and Singapore added 0.6 percent but Shanghai fell 0.5 percent, Seoul shed 0.2 percent and Sydney was slightly higher.

Wellington, Taipei, and Jakarta were all up and Bangkok was down.

Regional auto giants were sharply lower after the Commerce Department said it had launched a probe that could allow Trump to impose tariffs on auto imports over national security concerns.

“There is evidence suggesting that, for decades, imports from abroad have eroded our domestic auto industry,” Commerce Secretary Wilbur Ross said.

Japanese giant Toyota plunged more than three percent and Nissan fell 1.8 percent in Tokyo, while Kia dived 2.8 percent in Seoul. With AFP

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