Stocks gain again; JG Summit up

The stock market rose Thursday on hopes a basic steroid treatment tested by the UK will provide a cure to COVID-19 patients worldwide.

The Philippine Stock Exchange Index advanced 66.44 points, or 1.1 percent, to 6,348.45 on a value turnover of P1.04 billion. Losers, however, beat gainers, 124 to 69, with 46 issues unchanged.

The World Health Organization on Tuesday hailed as a “lifesaving scientific breakthrough” the British use of a basic steroid to treat severely ill COVID-19 patients, saving about a third of them.

Britain will immediately start giving dexamethasone to coronavirus patients, after a trial showed the steroid saved the lives of one third of the gravest cases.

JG Summit Holdings Inc. of the Gokongwei Group rose 5.4 percent to P64.30, while Jollibee Foods Corp., the biggest fast-food chain, climbed 3.4 percent to P149.90.

SM Prime Holdings Inc. of the Sy Group increased 3.2 percent to P32. MerryMart Consumer Corp., however, fell 18.4 percent to P2.75 after advancing for three consecutive days from its initial public offering price of P1 a share.

The rest of Asian markets were mixed Thursday as investors took a breather after a broad two-day rally, while they weighed concerns about a new wave of virus infections against massive monetary easing and stimulus measures.

The financial support, along with the easing of lockdown restrictions, opening-up of economies and positive data have provided support to equities across the planet in recent months.

But there is growing sense that traders may have got ahead of themselves and observers warn markets could be in line for a pull-back unless there is a major event to move higher, such as the development of a vaccine.

After starting the day on the back foot, regional equities clawed back losses and some managed to shift into positive territory.

Tokyo ended down 0.5 percent and Hong Kong dipped 0.3 percent, while Sydney slipped 0.9 percent after data showed a massive jump in Australian job losses.

Wellington was also down one percent after news the New Zealand economy suffered its worst contraction for almost three decades in the first quarter.

Seoul slipped 0.4 percent, while Bangkok and Jakarta were also down.

But Shanghai ended up 0.1 percent, Singapore added 0.3 percent, Mumbai climbed 0.7 percent and Taipei put on 0.1 percent.

“There is no doubt that economic activity is recovering from its worst levels,” said Stephen Innes at AxiCorp. “We can see that in numerous official and anecdotal reports. Still, financial data is thought to be unreliable these days  and the positive knock-on effects seem to be losing swagger quickly as we all know the economic nasties are coming down the road.” 

Analysts suggested there may also be some trepidation on trading floors about possible Democratic victories in November’s US presidential and congressional elections, with Donald Trump’s rival Joe Biden considered less likely to push such things as deregulation and tax cuts.

Trump’s chances were dealt another blow by the release of excerpts from a book by former national security advisor John Bolton, which says the president pleaded with China’s leader Xi Jinping for help to win re-election in 2020.