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Friday, March 29, 2024

Market climbs; Metrobank and SM Prime lead gainers

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Stocks climbed Wednesday in a continuation of a mini-Santa Claus rally, with the mining index leading the surge after the government lifted a four-year ban on new open-pit mines in a bid to revitalize the country’s coronavirus-battered economy.

The Philippine Stock Exchange Index added 48.06 points, or 0.7 percent, to 7,334.56 on a value turnover of P5.2 billion. Gainers beat losers, 114 to 79, with 62 issues unchanged.

The lifting of the mining ban sees the Philippine government reverse a move imposed in 2017, when the then-environment minister blamed the sector for widespread ecological damage.

The Philippines is one of the world’s biggest suppliers of nickel ore and is also rich in copper and gold, but the government estimates 95 percent of its mineral resources remain untapped.

Mining revenues contributed less than one percent of gross domestic product to the economy last year, according to government data. 

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Metropolitan Bank & Trust Co., the third-biggest lender in terms of assets, advanced 3.6 percent to P57, while SM Prime Holdings Inc. of the Sy Group, rose 2.6 percent to P35.50.

Megaworld Corp. of tycoon Andrew Tan, the largest lessor of office spaces, went up 2.5 percent to P3.33, while sister unit Emperador Inc., the biggest liquor maker, climbed 2 percent to P20.90.

The rest of Asian stocks were mostly down in Wednesday trade as a Santa Claus rally showed signs of fatigue and continued fears over the Omicron variant—as well as uncertainty about economic prospects for 2022—weighed on markets.

COVID-19 cases have surged across the world, prompting governments to impose new measures to limit contagion while the travel industry faced thousands of flight cancellations.

Warnings from the World Health Organization that the risk from the variant remains “very high” have compounded the sense that the pandemic is far from over, though data showing a reduced risk of hospitalization has lifted spirits.

Reflecting the uncertainty, Tokyo closed down in thin holiday trade on Wednesday, with the market weighed down by US futures losses.

Seoul was also down, while Sydney and Wellington rose. 

In China, markets fell, in a slide analysts partly attributed to losses in shares of major liquor brands—including Kweichow Moutai, one of the world’s biggest drinks companies.

“The drop is mostly contributed by some blue chips, in particular the baijiu names,” Zhang Gang, a strategist at Central China Securities, told Bloomberg.

“It’s likely that some funds want to cash out before the year-end after the recent rebound.”

Hong Kong’s Hang Seng Index was down as investors eyed uncertain prospects for 2022 as well as a continued debt crisis in the mainland’s property market.

A continued regulatory clampdown by Beijing on overseas listings by Chinese firms has also weighed down markets—though expectations that the country’s central bank will add further stimulus in 2022 offered some hope.

But trading volumes remain thin going into the new year, when prospects for global growth and the long-term impact of the Omicron variant are expected to become clearer. With AFP

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