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Thursday, March 28, 2024

Stock market rallies; ICTSI, SM Investments top gainers

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The stock market rose Tuesday on prospects of further economic reopening as COVID-19 cases in the country continue to decline.

The Philippine Stock Exchange Index climbed 77.93 points, or 1.1 percent, to 7,458.23 on a value turnover of nearly P7 billion. Gainers beat losers, 116 to 77, with 51 issues unchanged.

International Container Terminal Services Inc., the biggest port operator and owned by tycoon Enrique Razon Jr., advanced 5.7 percent to P216, while SM Investments Corp. of the Sy Group increased 2.7 percent to P976.

Aboitiz Power Corp. of the Aboitiz Group rose 1.5 percent to P36.25, while Emperador Inc., the largest liquor maker, added 1.1 percent to P23.20.

The rest of Asian markets mostly rose Tuesday as investors awaited key US inflation data later in the week, though the volatility that has characterized the year so far is expected to continue as central banks bring an end to the era of cheap cash.

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Tokyo was in positive territory helped by news that the United States will ease tariffs on steel imported from Japan that were imposed by Donald Trump, while Sydney, Singapore, Seoul, Wellington, Bangkok and Taipei were also up.

But Hong Kong dropped with already-troubled Alibaba under pressure from reports that major shareholder SoftBank was planning to offload at least a part of its huge stake in the firm. 

Chinese drug giant Wuxi Biologics suspended trading after enduring a record slump after Washington added it to a list that could restrict its US operations. The firm was down more than 20 percent when it stopped trading.

Mumbai and Jakarta were also slightly lower.

After a slow start to the week, the region shifted higher in early trade thanks to bargain-buying and following Friday’s bigger-than-expected surge in US jobs for January, which reassured on the state of the economic recovery.

But the big event is the inflation reading—to be announced on Thursday—that is tipped to see another painful rise in prices for last month, having come in at a four-decade high in December.

The spike has forced central banks around the world to wind back the ultra-loose monetary policies put in place two years ago to guard against the economic impact of COVID-19 and while many have lifted rates already, all eyes are on the Fed’s first move in March.

While US finance chiefs have not given a timetable for their increases, speculation is swirling over how many it will announce this year—with forecasts ranging from three to seven—and by how much.

That uncertainty has weighed on global markets this year and commentators have warned further ructions are to be expected.

However, a feeling that recent selling may have been overdone has attracted some investors back into the fray.

“Markets will get used to the tightening regime at some point,” Chris Iggo, chief investment officer for core investments at AXA Investment Managers, wrote in a note.

“The growth and earnings forecast revisions in the next few months will be key.” With AFP

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