Share prices jumped Wednesday for the third straight day, boosted by the flattening curve of COVID-19 infections and the easing of curfew measures in Metro Manila.
The Philippine Stock Exchange Index surged 165.88 points, or 2.7 percent, to 6,278.59 on a value turnover of P10.5 billion. Gainers overwhelmed losers, 163 to 49, with 39 issues unchanged.
Bank of the Philippine Islands, the third-biggest lender in terms of assets, rose 9.9 percent to P75.80, while Security Bank Corp., the sixth-biggest bank, climbed 5.2 percent to P100.
Alliance Global Group Inc. of tycoon Andrew Tan advanced 6.7 percent to P8, while Robinsons Land Corp. of the Gokongwei Group added 5.1 percent to P15.24.
The rest of Asian markets rose Wednesday on signs US lawmakers are edging towards agreeing a new stimulus for the struggling economy, while hopes for a vaccine helped temper worries about surging virus infections around the world.
All three main Wall Street indexes ended well up, and most of Asia followed suit.
Hong Kong rose more than one percent, with local carrier Cathay Pacific surging more than three percent after announcing it would make huge job cuts and shut down one of its airlines.
Tokyo rose 0.3 percent with Sydney, Singapore, Seoul and Taipei all in positive territory. Mumbai jumped one percent.
But Shanghai dipped after recent gains, while there were also losses in Wellington and Jakarta.
After months of stuttering talks, and with a deadline approaching, Democrats and the White House said they were closing the gap on their proposals, with House Speaker Nancy Pelosi saying legislation was being drawn up.
The comments fanned optimism for a much-needed spending boost for Americans and US businesses, just as a fresh wave of coronavirus hits the country and threatens to trigger the reimposition of economically painful containment measures.
However, while Pelosi said she was hopeful a bill could be passed before the November 3 election, she warned it must go through legislative steps.
“I am optimistic,” she said, but “legislation is tough.”
The White House has upped its offer by $80 billion to $1.88 trillion, which is still short of the Democrats’ $2.2 trillion plan, but Donald Trump has said he is willing to go even higher.
Senate Majority Leader Mitch McConnell—who has rejected massive spending packages—changed course and said he would bring the package to a vote if there is a bill Trump supports.
But he would still have to win round other fiscally conservative Republicans, which could prove a tough task.
“It’s very unlikely that a number of that level would make it through the Senate, and I don’t support something of that level,” Senator Mitt Romney told reporters, referring to the $1.8 trillion plan.
However, Axi strategist Stephen Innes said in a note: “Provided both parties are talking, if there is a will, there is a way as the political calculus allows for a pre-election deal. After all, what politician wants to be painted as voting for unemployment.”
Markets remain upbeat even if nothing is passed before November 3, with traders broadly expecting a new package to be passed at some point, whoever wins the election. With AFP