The stock market surged Wednesday on bargain-hunting, lifted by prospects of a stronger economy ahead of the release of the second-quarter gross domestic figures today.
The Philippine Stock Exchange Index jumped 125.61 points, or 1.6 percent, to 7,851.46 on a value turnover of P8.6 billion. Gainers beat losers, 116 to 75, with 52 issues unchanged.
Investors also welcomed the resolve of economic managers and monetary authorities to tame rising inflation after the rate accelerated to a more than five-year high of 5.7 percent in July from 5.2 percent in June.
Bangko Sentral Governor Nestor Espenilla Jr. said Tuesday monetary authorities would consider all the latest data updates in determining the strength of their follow-through response in the upcoming policy meeting of the Monetary Board today.
The government’s economic team composed of the Department of Finance, Department of Budget and Management, and National Economic and Development Authority said stronger government measures, most especially in improving agriculture productivity and, in the short term, a strategic trade policy, were needed to address supply constraints that have further pushed consumer prices up.
Globe Telecom Inc., the biggest telecommunications firm, advanced 8.6 percent to P2,024, while International Container Terminal Services Inc. climbed 7.2 percent to P92.15.
San Miguel Food and Beverage Inc., a unit of conglomerate San Miguel Corp., rose 6.4 percent to P74.50, while Universal Robina Corp., the largest snack food maker, gained 3.1 percent to P138.
A rally in the rest of Asian markets, meanwhile, stuttered on Wednesday, with early gains pared as the US-China trade row erodes investor confidence.
Wall Street had provided another strong lead with the Nasdaq approaching a record high, while energy firms in Asia pressed on with their rally following more gains in oil prices.
But after two days of gains across the region, Asia could not maintain its morning momentum and key markets were mixed in the afternoon, despite forecast-beating Chinese trade figures.
Tokyo ended 0.1 percent lower, Shanghai shed 1.3 percent and Singapore was down 0.8 percent, while Wellington was also off.
Hong Kong ended up 0.4 percent, Sydney closed up 0.2 percent and Seoul put on 0.1 percent, with Taipei and Jakarta also higher.
After months of tensions, traders remain on edge for any new developments in the trade saga involving the world’s top two economies.
On Tuesday the US said Donald Trump’s 25 percent tariffs on a further $16 billion of Chinese goods would kick in on August 23. That is on top of the measures imposed on $34 billion of imports last month.
The move had been widely expected. But with China putting retaliatory measures in place, it reinforced fears the two sides are heading for an all-out trade war that could hammer the global economy.
The White House has also lined up another $200 billion in Chinese imports to target in future. With AFP