PSEi spared from Asia rout
The Philippine Stock Exchange index finished at 6,794.86, higher by 38.91 points or 0.58 percent.
Local shares index closed on the positive yesterday as an outsized surge in bond yields spooked investors, who rushed to dump risk assets, especially high-flying technology names.
Equity markets in most of the region, however, were pummelled on growing fears that an expected strong global economic recovery this year will fan inflation and force central banks to hike interest rates, despite reassurances that ultra-loose monetary policies will be kept in place for as long as needed.
The Philippine Stock Exchange index (PSEi) finished at 6,794.86, higher by 38.91 points or 0.58 percent after ranging from 6,681.14 to 6,827.17. Volume of trades totaled 187,255 shares valued at P12.919 billion.
Double-edged sword
The rollout of vaccines, slowing of infections and US President Joe Biden’s impending huge US stimulus are proving to be a double-edged sword for traders as they weigh the much-needed return to pre-pandemic life with the prospect that prices will soar.
Major US averages tumbled in rapid fashion as the 10-year Treasury yield soared as high as 1.6 percent in a sudden move that some described as a “flash” spike, Regina Capital Development Corp. managing director Luis Limlingan said. Oil prices remained close to 13-month highs with profit-taking limited by an assurance that US interest rates will stay low and a sharp drop in US crude output last week due to the storm in Texas.
Brent crude for April slid 0.24 percent to settle at $66.88 per barrel. US West Texas Intermediate gained 0.49 percent to settle at $63.53 per barrel.
Rollout of vaccines, slowing of infections and US President Joe Biden’s impending huge US stimulus are proving to be a double-edged sword for traders.