Lo­cal stocks re­bound as North Korea fears ease

Business World - - THE STOCK MARKET - Arra B. Fran­cia with Reuters

LO­CAL EQ­UI­TIES bounced back on Wed­nes­day as in­vestor con­cerns over on­go­ing geopo­lit­i­cal ten­sions with Japan, North Korea, and the US eased.

The bell­wether Philip­pine Stock Ex­change in­dex rose 0.10% or 8.34 points to close at 7,956.73 yes­ter­day, slightly re­cov­er­ing from Tues­day’s drop fol­low­ing North Korea’s launch­ing of a missile over Japan.

The broader all-shares in­dex like­wise inched up by 0.02% or 1.32 points to 4,722.

“Stocks shrugged off the North Korean missile launch and re­gained their foot­ing to close higher on Wed­nes­day,” Regina Cap­i­tal De­vel­op­ment Corp. Man­ag­ing Di­rec­tor Luis A. Lim­lin­gan said in a mo­bile phone mes­sage.

“I think what hap­pened [ on Tues­day] was a knee-jerk re­ac­tion be­cause it sur­prised ev­ery­one even the big de­vel­oped coun­tries like the US. But at the end of the day it was noth­ing that cre­ated a panic or a cri­sis… The mar­ket ac­cepted the sit­u­a­tion and now is back to its side­ways be­hav­ior,” Sum­mit Se­cu­ri­ties, Inc. President Harry G. Liu said in a phone in­ter­view.

“So now the mar­ket is just wait­ing for a fun­da­men­tal cat­a­lyst that will kick up 8,100 which I think in due time it’s more an up­side mar­ket be­fore the year ends,” Mr. Liu said.

Ma­jor US stock in­dexes also ended higher af­ter re­cov­er­ing from steep early losses trig­gered by fears that hos­til­i­ties in the Korean Penin­sula could es­ca­late.

Overnight, the Dow Jones In­dus­trial Av­er­age rose 56.97 points or 0.26% to 21,865.37; the S& P 500 gained 2.06 points or 0.08% to 2,446.3 and the Nasdaq Com­pos­ite added 18.87 points or 0.3% to 6,301.89.

MSCI’s broad­est in­dex of Asia-Pa­cific shares out­side Japan rose half a per­cent, tak­ing cue from Wall Street’s higher close, as con­cerns about North Korea and Japan ebbed.

“Asian bourses may see some fur­ther sta­bi­liza­tion if not re­cov­ery today as the risk-off con­cerns fade a lit­tle,” OCBC Bank said in a note.

Back home, four sec­toral coun­ters ended in the green, led by ser­vices, which booked an in­crease of 0.98% or 16.79 points to 1,714.89. The min­ing and oil subindex fol­lowed, climb­ing 0.26% or 34.24 points to 13,152.79; hold­ing firms rose 0.18% or 14.67 points to 7,852.15; and in­dus­tri­als gained 0.05% or 6.28 points to close at 11,025.13.

On the other hand, the fi­nan­cials counter de­clined by 0.47% or 9.37 points to 1,978.42 and prop­erty dropped 0.14% or 5.31 points to 3,728.29.

Value turnover stood at P5.87 bil­lion yes­ter­day, with 1.29 bil­lion is­sues chang­ing hands, down from Tues­day’s P6.87 bil­lion.

“Vol­ume was low mov­ing into a US La­bor Day Hol­i­day,” Regina Cap­i­tal’s Mr. Lim­lin­gan said.

De­clin­ers out­num­bered ad­vancers, 101 to 91, while 53 names were un­changed.

Net for­eign sell­ing widened to P55.91 mil­lion on Wed­nes­day from the P19.37 mil­lion recorded the pre­vi­ous day. —

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