The stock market rallied Friday on bargain-hunting, with lenders leading advancers in an early Santa Claus rally.
The Philippine Stock Exchange Index jumped 119.18 points, or 1.6 percent, to 7,773.12 on a value turnover of P13.2 billion. Losers, however, beat gainers, 92 to 78, with 55 issues unchanged.
Metropolitan Bank & Trust Co., the second-biggest bank in terms of assets, advanced 5.4 percent to P68, while Bank of the Philippine Islands, the third-largest, climbed 3.8 percent to P87.
Conglomerate JG Summit Holdings Inc. of the Gokongwei Group, rose 4 percent to P80.10, but Manila Electric Co., the biggest retailer of electricity, slumped 8.1 percent to P286.20.
The rest of Asian markets were mixed on Friday as investors await fresh catalysts to drive business, though with the China-US trade deal agreed and Christmas approaching many are in wind-down mode.
Wall Street provided yet another record-breaking lead, with all three main indexes being helped to all-time highs by news that a revised US-Canada-Mexico pact had finally been agreed.
Concerns that pen had not yet been put to paper on the China-US pact were soothed by US Treasury Secretary Steven Mnuchin, who said a technical review was taking place and it would be signed in early January.
Regional equities swung back and forth through the morning session, with investors now turning an eye to the festive break and observers indicating next year could see further gains.
“Agreement of the phase one deal between the US and China has removed quite a lot of the uncertainties in the outlook for 2020,” said Stephen Innes, senior market analyst at AxiTrader.
“And with the global growth revival trade looking better and better by the day, equity investors are reveling in the holiday cheer.”
Tokyo eased 0.2 percent and Shanghai ended down 0.4 percent, while Sydney fell 0.3 percent.
Taipei gave up 0.5 percent, while there were also losses in Jakarta and Bangkok.
However, Hong Kong ended up 0.3 percent, Seoul gained 0.4 percent and Mumbai edged higher while Wellington and Singapore were flat.
OANDA’s Jeffrey Halley was also upbeat on the near-term outlook.
“Stock markets will continue to trace out new highs into the early part of 2020 at least, barring a trade hiccup,” he said.
On currency markets the pound edged up but was still struggling against the dollar after British Prime Minister Boris Johnson this week revived no-deal Brexit worries by saying he wanted to pass a law preventing an extension to the next phase of EU talks.
Sterling has plunged below the levels it was at before last week’s landslide win for Johnson, who says he wants a full break by the end of next year—raising the chances of leaving without a trade deal in place.
Adding to downward pressure on the British unit was the Bank of England leaving the door open for an interest rate cut next month as it assesses the outlook for the economy.
Observers said there was a two-thirds chance of a reduction in borrowing costs. With AFP