The stock market climbed Friday to snap a three-day slump as investors went on bargain-hunting on select issues.
The Philippine Stock Exchange Index rose 72.03 points, or 0.8 percent, 8,810.75 on a value turnover of P7.8 billion. Gainers overwhelmed losers, 123 to 72, with 58 issues unchanged.
Jollibee Foods Corp., the biggest fastfood chain, added 2.4 percent to P294, while Megaworld Corp., the largest lessor of office spaces, climbed 1.2 percent to P4.96. Parent Alliance Global Group Inc. increased 2.4 percent to P15.60.
Integrated Microelectronics Inc., a unit of conglomerate Ayala Corp., advanced 6.6 percent to P21.20. The Philippine Stock Exchange approved the P5-billion stock rights offering of IMI that will entitle shareholders to acquire one share for every 5.335 common shares owned.
Conglomerate San Miguel Corp. surged 4.9 percent to P152.
The rest of Asian markets swung on Friday with some recovering from early losses but traders remain on edge as over a rise in US Treasury yields to four-year highs, while fresh US political turmoil is also causing unease.
Tokyo ended 0.9 percent down while Singapore shed 0.2 percent and Seoul dived 1.7 percent.
But Hong Kong, which in January chalked up a series of records, reversed the morning sell-off and was up 0.1 percent in the afternoon helped by bargain-buying.
Shanghai closed up 0.4 percent, Sydney rose 0.5 percent and Wellington was 0.4 percent higher. Bangkok and Jakarta were also higher.
Equity traders around the world have been firing on all cylinders in recent months, sending markets to record or multi-year highs, on confidence in the global economy, healthy earnings and optimism over Donald Trump’s tax cuts.
That improvement has also led central banks to temper their crisis-era stimulus measures, which has led to a rise in bond yields, including the key US Treasury market.
The price of benchmark 10-year Treasury bills is at levels not seen since April 2014, sparking fears a lift in interest rates will hit economic growth and divert money from equities.
With the Federal Reserve already in the midst of a rate raising cycle—it is tipped to hike at least three times this year—there is increasing concern about the impact on world markets.
“The performance of the bond market has got to be beginning to flash red to equities,” Mark Heppenstall, chief investment officer of Penn Mutual Asset Management, said.
“It seems we’re reaching a critical level on interest rates that could throw some cold water on the party in the equity market.”
And Geoff Lewis, Hong Kong-based senior strategist for Asia at Manulife Asset Management, told Bloomberg Television: “If we see a sharp move up that would be a negative shock for the equity markets.”
On Thursday the S&P 500 and Nasdaq on Wall Street fell, although the Dow edged up.
The dollar was up slightly against its major peers but it is struggling to stage a strong recovery against the pound and euro as dealers bet on tighter monetary policy at the European Central Bank and preferable terms for Britain when it leaves the European Union. With AFP