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Monday, May 13, 2024

Stocks advance; Emperador falls

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The stock market rose Tuesday on mild bargain hunting, taking its cue from a rally in Asia on renewed optimism over the recovery outlook.

The Philippine Stock Exchange Index added 87.15 points, or 1.3 percent, at 6,678.82 on a value turnover of P5.5 billion. Gainers beat losers, 106 to 83, with 54 issues unchanged.

Globe Telecom Inc., the second-biggest mobile phone company, advanced 5 percent to P2,280, while JG Summit Holdings Inc. of the Gokongwei Group climbed 2.5 percent to P65.20.

Manila Electric Co., the largest retailer of electricity, increased 2.8 percent to P289, but Emperador Inc. of tycoon Andrew Tan, the biggest liquor maker, fell 2.4 percent to P15.98.

The rest of equities in Asia and oil prices rose again on Tuesday, extending a global rally after Washington gave full approval to Pfizer-BioNTech’s vaccine and an increase in US COVID infections appeared to be peaking.

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Hong Kong jumped more than two percent with under-pressure tech leading the charge, as observers pointed to a lack of fresh measures from China after a recent spate of rules as part of a regulatory crackdown on the sector and other industries.

Tencent and Alibaba were each up more than eight percent as investors picked up bargains following their recent rout.  

And ecommerce giant JD.com powered around 15 percent higher after a forecast-beating earnings report showed its resilience to Beijing’s latest moves.

Shanghai and Seoul added more than one percent, while there were also healthy advances in Tokyo, Sydney, Singapore, Wellington, Taipei, Mumbai and Bangkok.

A call by China’s central bank for more economic support and a move to keep borrowing costs down also provided some cheer to the region, while hopes that Beijing’s clampdown on the private sector was adding to the buoyant sentiment.

Investors are also keenly awaiting a policy speech later in the week by Federal Reserve boss Jerome Powell.

Markets have enjoyed a strong start to the week, further helped by bargain-hunting following a recent sell-off caused by worries including the fast-spreading Delta variant and expectations the Fed will soon begin tapering financial support.

New York’s three main indexes shot higher Monday—with the Nasdaq hitting a new record—as traders cheered news that the Food and Drug Administration had fully approved the Pfizer-BioNTech shot, which is expected to help push up vaccinations.

Around 52 percent of the population has been double jabbed but the rate has slowed owing to hesitancy among many people.

The FDA move “now paves the way for many companies and government agencies to enforce vaccine mandates,” said OANDA’s Edward Moya, adding that making them mandatory “could move the needle here in getting the US closer to herd immunity.”

Analysts said data suggesting that a recent spike in infections in the United States was tailing off was also lifting spirits as figures dropped in the original hotspots and new cases slowed in Florida and Louisiana.

China’s apparent success in taming a worrying flare-up in the world’s number two economy also lifted the mood on trading floors.

The positive news lifted optimism over the global recovery, which had taken a knock this month as some governments were forced to reimpose lockdowns or other containment measures. With AFP

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