Stocks rose again Wednesday, buoyed by a further easing of coronavirus lockdown measures worldwide, though the advances remain capped by concern that the re-openings could spark a second wave of infections.
The Philippine Stock Exchange Index climbed 68.99 points, or 1.2 percent, to 5,643.97 on a value turnover of P4.5 billion. Gainer beat losers, 110 to 78, with 49 issues unchanged.
PLDT Inc., the biggest telecommunications company, advanced 5.3 percent to P1,270, while SM Prime Holdings Inc. of the Sy Group, was up 4.2 percent to P30.95.
Dito CME Holdings Corp., the third telecommunications player and owned by businessman Dennis Uy, surged 7.4 percent to P2.18, while Jollibee Foods Corp., the largest fast-food chain, added 4.1 percent to P147.
The rest of Asian markets, meanwhile, climbed again Wednesday.
Traders brushed off more data showing the gaping hole being blown in the global economy that is also seeing companies either pull their earnings reports or provide grave forward guidance as demand is battered.
Equities have broadly moved into a bull market, having bounced more than 20 percent from their March lows, thanks to multi-trillion-dollar stimulus from governments and pledges of extra support from central banks.
Adding to the relatively upbeat mood is news that countries are beginning to slowly re-emerge from the crisis.
As sunseekers flocked to beaches in Australia and New Zealanders ate from reopened takeaways, French Prime Minister Edouard Philippe said Tuesday that shops could reopen on May 11, following an easing up in Italy, Germany, Spain and parts of the United States.
The moves come as the rate of infections shows a general pattern of slowing, following a weeks-long shutdown.
“The whole idea of returning to work has aroused the fancy of many an investor. And while no one expects the global economy to immediately time shift back to January 2020, market reopenings are positive,” said Stephen Innes of AxiCorp.
However, he did warn that “over the next few weeks, markets are going to struggle for direction while the debate over easing lockdown restrictions continues. Fundamentally, investors are caught in the same pickle as governments who have to balance the economic risks with the chances of the second round of infections.”
Shanghai ended up 0.4 percent, while Sydney, Mumbai and Taipei were all more than one percent higher. Hong Kong and Singapore ticked 0.2 percent up, while there were also rises in Seoul, Kuala Lumpur, Jakarta and Bangkok.
Wellington, though, was hit by profit-taking following a more than three percent surge Tuesday. Tokyo was closed for a public holiday.
Investor attention is now on the release later in the day of US growth data, which is expected to show the world’s top economy contracted in the first three months of the year.
Also, the Federal Reserve will end its latest policy meeting, with traders looking to see if it has any more words of comfort for markets after pledging financial backstops to banks, businesses and local and state governments. With AFP