The stock market climbed Tuesday on hopes Hillary Clinton will beat Donald Trump to win Tuesday’s presidential election but traders are cautious with many opinion polls saying the race is too close to call.
The Philippine Stock Exchange Index advanced 110.61 points, or 1.5 percent, to 7,307.80 on a value turnover of P7.2 billion. Gainers overwhelmed losers, 119 to 49, with 49 issues unchanged.
Universal Robina Corp., the biggest snack food maker, surged 6.9 percent to P185, while Jollibee Foods Corp., the largest fastfood chain, rose 4.6 percent to P241.
Nickel Asia Corp., the biggest nickel producer, advanced 6.2 percent to P7.53, while Megaworld Corp., the largest lessor of office spaces, gained 3.2 percent to P4.15.
Globe Telecom Inc., the second-biggest telecommunications company, dropped 5.5 percent to P1,550 after reporting Monday that net income fell 50 percent in the third quarter from a year ago, after acquiring 50 percent of San Miguel Corp.’s telecom assets.
Globe, which is controlled by conglomerate Ayala Corp., said net income amounted to P2.7 billion in July to September, down from P5.43 billion it posted in the same period last year.
Global equities and risk assets also surged Monday after the FBI said it would not pursue criminal charges against Clinton over her use of a private email server while secretary of state.
The rally came after a week of turmoil caused by the bureau’s announcement on October 28 it was looking into the issue, despite having cleared her once already in July.
Clinton is considered by many investors to be a safer bet than Trump, who is seen as a loose cannon with policies many fear could wreck the world’s top economy.
Hong Kong rose 0.3 percent in the afternoon, Sydney ended up 0.1 percent, Seoul gained 0.3 percent and Singapore was 0.3 percent higher.
Wellington and Taipei also posted healthy advances but Tokyo closed marginally lower.
Shanghai added 0.5 percent as investors brushed off news that Chinese exports fell for a seventh consecutive month in October as weak global demand put another dent in the world’s number two economy.
“We’ve been swung this way and that over who may win, but expectations of a Clinton victory are firming,” said Toshihiko Matsuno, a senior strategist at SMBC Friend Securities Co.
“Since it’s easier to predict policy with her, there’s more of a sense of security in the market. Stocks may price in 70 to 80 percent (chance) of a Clinton victory today,” he told Bloomberg News.
The advances follow big gains in New York where the S&P 500 ended a nine-day losing streak to rise 2.2 percent, its biggest gain since March. The Dow and Nasdaq each finished more than two percent higher. Frankfurt, London and Paris soared close to two percent.
Also, the Vix volatility index, a benchmark for investor fear, declined after nine straight days of gains. With AFP