Stocks surged Wednesday on window dressing in the last trading week of 2016 and following the release of upbeat US economic data.
The Philippine Stock Exchange index, the 30-company benchmark, jumped 188 points, or 2.8 percent, to close at 6,846.44. This also reduced losses this year to 1.5 percent.
The broader all-share index also gained 79 points, or 2 percent, to settle at 4,150.17, on a value turnover of P3.5 billion. Advancers outnumbered losers, 119 to 58, while 47 issues were unchanged.
Seventeen of the 20 most active stocks ended in the green, led by developer Ayala Land Inc. which jumped 5.1 percent to P31.70 and conglomerate Aboitiz Equity Ventures Inc. which advanced 4.9 percent to P70.90.
Meanwhile, Tokyo shares ended flat Wednesday despite Toshiba’s second straight double-digit plunge, in quiet Asian trading before the New Year, while US crude oil finally ended a winning streak.
Stock in the troubled Japanese conglomerate plummeted more than 20 percent as the company said it may book a one-time loss of several billion dollars over its US nuclear business.
On a quiet day for the region, Hong Kong was up 0.4 percent in afternoon trade on the market’s first working day since the Christmas break, while Shanghai slid 0.4 percent by the close.
Chinese investors have endured a tough year during which bonds, shares and currency have all slumped. Shanghai is heading for its largest drop in five years.
The thin trading volume is expected to continue in Asian markets during the last week of a volatile 12 months.
Investors have displayed resilience in the face of shocks such as the Brexit vote and Donald Trump’s US presidential win, helping to weaken the yen and propel Japan’s Nikkei to 12-month highs.
“The environment isn’t bad, but with some foreign investors away on vacation, there are few participants and the market lacks momentum to push prices beyond recent highs,” Chihiro Ohta, a Tokyo-based senior strategist at SMBC Nikko Securities, told Bloomberg News.
Australian shares rose one percent, the most in three weeks, after a long holiday weekend to continue a pre-Christmas rally albeit on low volumes.
Seoul ended the day 0.9 percent down as a political crisis dragged on while Singapore was 0.4 percent up in afternoon trade.
US crude prices drifted lower, with the US benchmark contract down slightly Wednesday to finally snap a wining streak ahead of US energy inventory data released Thursday. On Tuesday, US oil prices finished at $53.90 a barrel, their highest level of the year.
But analysts said trading volumes were around half typical levels.
“On such low volumes it’s difficult to read much into the moves and focus will turn to OPEC in the new year,” said CMC Markets sales trader Alex Furber, referring to planned output curbs by the oil cartel to bolster the market.
The yen drifted lower against the dollar for a second day, with analysts pointing to strong US consumer data supporting the greenback.
The Japanese currency declined despite data showing the nation’s industrial production rose 1.5 percent in November from the previous month.
Regional investors were following a weak lead from Wall Street, with the Dow again failing to break through the landmark 20,000 barrier although the Nasdaq finished at a fresh record Tuesday. With AFP, Bloomberg