The stock market rose slightly Friday in mixed trading, partly buoyed up by increased government spending that led to a bigger budget deficit in 2016.
The Philippine Stock Exchange Index added 12.18 points, or 0.2 percent, to 7,247.12 on a value turnover of P5.5 billion. Losers, however, beat gainers, 92 to 81. with 61 issues unchanged.
Finance Secretary Carlos Dominguez III said the larger budget deficit of P353.4 billion incurred in 2016 would result in an inclusive and strong economic growth.
He said the wider budget gap was in keeping with government’s commitment to start spending big to sustain high growth, attract investments and create jobs.
Conglomerate Ayala Corp. gained 2.1 percent to P820, while LT Group Inc. of tobacco and airline tycoon Lucio Tan climbed 2.1 percent to P15.28.
Cemex Holdings Philippines Inc. tumbled 3.9 percent to P8.28, while Metro Pacific Investments Corp., which is into toll roads, water and electricity distribution and hospitals dropped 1.4 percent to P6.88.
The rest of Asian equity markets fell on Friday after a broad global rally, but the dollar strengthened against most other currencies as traders become increasingly confident the Federal Reserve will hike interest rates this month.
Share traders headed for the door ahead of the weekend, after the week’s surge.
Tokyo ended 0.5 percent lower, with dealers brushing off news that Japanese consumer prices rose last month for the first time in almost a year.
Hong Kong sank 0.6 percent in the afternoon while Shanghai ended 0.4 percent off, Seoul slipped 1.1 percent, Singapore shed 0.7 percent and Sydney dived 0.8 percent.
There were also big losses in Taipei and Wellington.
Investors took their cash off the table on profit-taking Thursday after the previous day’s surge fueled by Donald Trump’s address to Congress, in which he promised massive infrastructure spending and tax cuts.
But with Fed boss Janet Yellen due to speak Friday the greenback has bounced back as experts say the bank is odds-on to tighten monetary policy in the face of an improving US economy.
Comments from three top Fed officials, including a noted dove, have cemented those expectations.
“The Fed rate hike balloon has successfully been floated, and the market has continued to reprice the March rate hike probability fueled by the dove of doves, Lael Brainard, who came out ‘hawks-a-blazing’ at exactly the appropriate time,” said senior OANDS trader Stephen Innes in a note.
“With Brainard flying the dove’s coup, she has tipped the scales in overwhelming favor of a rate hike as the market now views March as fait accompli.”
The dollar, which has swung wildly as investors try to gauge Trump’s plans and veiled Fed messages, broke above 114 yen for the first time in two weeks in Asia on Thursday and pressed on through the day.
In Tokyo it was down against the yen but well up from the levels below 112 yen touched earlier in the week, while it maintained recent gains against the euro and pound.
However, it surged against higher-yielding and emerging market currencies. It jumped more than one percent against South Korea’s won, 0.2 percent on the Indonesian rupiah and 0.8 percent versus Australia’s dollar. The New Zealand and Singapore dollars were also sharply lower. With AFP