Philippine central bank sends stocks soaring with surprise rate cut

MANILA - Philippine shares led emerging Asian markets on Friday, surging 2.5 percent after the country's central bank delivered a surprise cut in interest rates to shore up a domestic economy struggling after months of on-off coronavirus restrictions.

The region's foreign exchange markets were largely higher, with new steps from the Bank of 

Thailand to stem gains for the baht seeing little success. The currency rose almost half a percent in morning trade.

Equity markets across Asia were up across the board, with Singapore gaining over 1 percent, as an improved global mood and the region's relative success in controlling the COVID-19 pandemic encourages investment.

Most of the region's emerging stock markets were set to post weekly gains of around 2 percent.

The Philippine central bank fuelled gains in Manila by cutting another 25 basis points off its main interest rates on Thursday, bringing them to a new low of 2.0 percent.

"Loose monetary policy could be good for stock valuations and could drive a further rally for local bond yields," said Jennifer Lomboy, a fixed income fund manager at First Metro Asset in Manila.

The Philippine stock index hit its highest since late-February, while the peso edged 0.2 percent higher.

Analysts and investors were unimpressed with the Thai central bank's announcement of easier rules for investing in foreign currencies and securities, its latest move to try and halt the baht's rise. 

The bank, which held off on an outright cut in interest rates on Wednesday, has warned again of the damage the baht's strength can do the economy after a more than 3 percent jump in the currency this month. 

"The measures seem to be more of the same old, same old, which is to encourage outflows," Kobsidthi Silpachai, the head of capital markets research at Kasikornbank said, arguing that the heart of the problem is high taxation. 

"Since excise taxes on imported goods are high, it suppresses imports, which makes the current account surplus even higher, which leads to a strong baht," he said. "We have seen many years of monetary measures... we need to try fiscal measures like tax reforms."

Bank Indonesia also surprised by cutting rates this week, by 25 basis points to 3.75 percent, dimming the appeal of its high-yielding local bond market.

The central bank governor said the rupiah, which dipped 0.2 percent on Friday, was still undervalued. The currency has been one of the outperformers among the region's emerging markets, climbing over 3 percent this month.

"We expect a possible rate cut in the near-term for as long as the rupiah remains on its current appreciation bias," said Nicholas Mapa, a senior economist at ING.

-reuters-

Philippine stocks see best week since June as virus slows, foreign buying up

MANILA - Philippine stocks surged 2.2 percent on Friday closing at 6,484.06 to end the week with their biggest gain since June, bolstered by the easing of restrictions as new coronavirus cases showed signs of slowing.

The Philippine stock exchange index saw a near 10 percent weekly gain, with shares of food and real-estate companies climbing most, as investors hoped for increased footfall in malls and hotels after curfew hours were trimmed earlier this week.

The rally was boosted further by foreign investors, as new daily coronavirus cases slowed in the last week and the government moved to reopen the economy, signalling better economic prospects, said Nicholas Mapa, ING's senior economist for the Philippines.

"This may be the reason for the recent rally, but we'll have to monitor the COVID-19 developments going forward," he cautioned.

Data from Refinitiv showed that foreigners, while still net sellers of Philippine equities so far in October, pumped in about 557.44 million pesos ($11.5 million) into Philippine equities across the last two sessions.

Yields on the Philippine ten-year benchmark bond, usually seen as a safer investment than stocks, have also climbed recently, signalling the return of optimism.

-reuters-  

Philippine stocks rise as virus cases slow

(Reuters) - Philippine shares hit their highest level

in over three months on Wednesday after a drop in new COVID-19

infections, while Taiwan's dollar rose the most among Asian

currencies as strong export orders lifted sentiment. 

    Manila's benchmark index was set to extend gains for

a third consecutive day, rising 2.7% to its highest since July

9, after the Philippines reported its lowest daily increase in

infections in four weeks.

    Sentiment has improved recently for Philippine stocks after

the passage of the 2021 budget aimed at underpinning an economic

recovery, and the relaxation of further coronavirus restrictions

in Manila.

    "While recent gains have been impressive, I think there is

still a long way to go in order for the benchmark stock index to

recover back to pre-pandemic levels," said Daniel Dubrovsky,

analyst at IG.

    "The challenge that Philippine equities face as a whole is

that about 40% of the benchmark is comprised of industrial

companies...which really need the support of a strong rebound in

global growth. While it is hard to say which sector could

outperform, monetary policy conditions seem to be supportive of

the real estate one." 

    Stock markets and currencies across the rest of the region

traded higher as growing optimism that U.S. lawmakers are

nearing a deal on a stimulus package helped draw money into

riskier Asian assets, sending the dollar to a one-month low.

    South Korea's won advanced 0.6% and the benchmark

KOSPI rose 0.3%, even as preliminary trade figures

showed exports out of Asia's fourth-largest economy fell again.

    Taiwan's dollar extended its winning streak for a

third consecutive day, rising 1% to 28.64 per dollar after data

showed export orders rose for a seventh consecutive month in

September.

    The currency has gained around 5% against the greenback so

far this year, having benefited from stronger exports from the

tech powerhouse island, helped by demand for laptops and tablets

to support the work-from-home trend during the COVID-19

pandemic. 

    "While central bank is likely to be monitoring the situation

carefully and perhaps intervene marginally, they have little

choice but to resign to the trend," said Mahesh Sethuraman,

deputy head of global sales trading at Saxo Capital Markets.

    "While it does hurt the competitiveness of their export

economy to some extent, given Taiwan is one of the few economies

to bounce back from COVID swiftly, that gives the central bank

some buffer to withstand currency appreciation." 

    

    HIGHLIGHTS:

    ** Thailand's 10-year government bond yields are down 1.5

basis points at 1.375%

    ** In the Philippines, top index gainers are Alliance Global

Group Inc up 5.73% at 7.93 pesos, Robinsons Land Corp

 up 5.52% at 15.3 pesos, Bank of the Philippine Islands

 up ​ 4.35% at 72 pesos

    * Top losers on FTSE Bursa Malaysia Kl Index include

Top Glove Corporation Bhd down 4.43% at 9.06 ringgit;

Hartalega Holdings Bhd down 2.94% at 18.48 ringgit;

Sime Darby Plantation Bhd down 1.61% at 4.9 ringgit

    

    

  Asia stock indexes and                                        

 currencies at   0418 GMT                                 

 COUNTRY   FX RIC     FX DAILY  FX YTD    INDEX   STOCKS  STOCKS

                             %       %           DAILY %   YTD %

 Japan                   +0.19   +3.15              0.41    0.03

 China     <CNY=CFXS     +0.33   +4.63             -0.35    8.73

           >                                              

 India                    0.00   -2.83              0.89   -1.36

 Indonesi                +0.17   -5.09             -0.02  -19.06

 a                                                        

 Malaysia                +0.10   -1.30             -0.59   -5.46

 Philippi                -0.08   +4.33              2.74  -19.65

 nes                                                      

 S.Korea   <KRW=KFTC     +0.56   +2.07              0.31    7.65

           >                                              

 Singapor                +0.12   -0.83              0.39  -21.23

 e                                                        

 Taiwan                  +0.97   +5.07              0.24    7.47

 Thailand                +0.16   -4.20              0.69  -22.84

 

 (Reporting by Shriya Ramakrishnan in Bengaluru)

-reuters-

Fruitas Holdings files for IPO to fund business expansions

MANILA - Fruitas Holdings Inc. on Monday filed for an initial public offering (IPO) worth P1.2 billion with the Securities and Exchange Commission to fund its planned business expansions.

Proceeds from the IPO will be used to fund store network, commissary and food park expansions as well as acquisitions and debt repayment, the company said in a statement.

Fruitas Holdings said it planned to offer up to 533,660,000 primary common shares with an over-allotment option of up to 68,340,000 outstanding common shares at a maximum of P1.99 each.

“We view the potential listing on the Philippine Stock Exchange as part of our growth journey and are excited to have taken the first step by filing our registration statement," said Fruitas President and CEO Lester Yu.

BDO Capital Investment Corp. and First Metro Investment Corp. have been appointed as joint issue managers, joint bookrunners, and joint lead underwriters for the offering, the company said.

The offer period is intended to run from Nov. 18 to Nov. 22 and is subject to regulatory approvals, the company said. Target listing is end of 2019, Fruitas Holdings said.

The company has over 20 brands under its portfolio and 949 stores as of June 2019.


-- with a report from Michelle Ong, ABS-CBN News

source: news.abs-cbn.com

Global stocks mixed amid trade war fears

NEW YORK -- Global stocks finished mixed Monday ahead of a heavy week of corporate earnings amid lingering tensions over trade wars.

European Commission President Jean-Claude Juncker heads to Washington on Wednesday to meet with President Donald Trump and try to avert an escalation of tit-for-tat trade tariffs.

Trump already is embroiled in a messy trade spat with China and Europe, while negotiations with Canada and Mexico to revamp the North American Free Trade Agreement have stalled.

"It is hard to imagine a more difficult trading environment due to worsening trade-war rhetoric, a sharp devaluation of the Chinese currency, an unsynchronized global recovery, and the President commenting on Fed policy," said Canaccord Genuity strategist Tony Dwyer.

The week's calendar includes a heavy schedule of earnings reports from companies ranging from British pharma giant GlaxoSmithKline to German automaker Daimler to US aerospace titan Boeing.

Tech companies are also in focus, with Amazon and Facebook reporting later in the week. Google-parent Alphabet rocketed higher in after-hours trading Monday after reporting better-than-expected results.

Equity markets in Paris, London and Frankfurt all ended somewhat lower, while major US indices were mixed.

Tokyo's stock market meanwhile dropped 1.3 percent -- falling for a third straight trading day -- as a stronger yen hurt exporters, making their products less competitive abroad.

Oil prices pushed higher early in the day after Trump warned Iran would "suffer consequences" in response to bellicose commentary from Iranian President Hassan Rouhani, who cautioned Trump not to "play with the lion's tail," saying that conflict with Iran would trigger the "mother of all wars."

But oil prices later pulled back, ending slightly lower on concerns about additional oil supply from Saudi Arabia.

Among individual names, Italian automaker Fiat Chrysler skidded 1.7 percent lower in Milan after its chief of 14 years Sergio Marchionne suffered life-changing health problems, forcing the company to name a new management team.

Shares in budget airline Ryanair fell in London trade as it reported its profit had been squeezed by higher fuel costs and salaries for pilots. With limited visibility on Brexit and a strike set for this week, the company's share price tumbled 6.4 percent.

KEY FIGURES AT 9:30 A.M. IN MANILA

Manila - PSEi: DOWN: 0.18 percent at 7,363.80 (early trade)

Tokyo - Nikkei 225: UP 0.64 percent at 22,541.38 (early trade)

New York - Dow: DOWN 0.1 percent at 25,044.29 (close)

New York - S&P 500: UP 0.2 percent at 2,806.98 (close)

New York - Nasdaq: UP 0.3 percent at 7,841.87 (close)

London - FTSE 100: DOWN 0.3 percent at 7,655.79 (close) 

Frankfurt - DAX 30: DOWN 0.1 percent at 12,548.57 (close)

Paris - CAC 40: DOWN 0.4 percent at 5,378.25 (close)

EURO STOXX 50: DOWN 0.2 percent at 3,453.42 (close)

Tokyo - Nikkei 225: DOWN 1.3 percent at 22,396.99 (close)

Hong Kong - Hang Seng: Up 0.1 percent 28,256.12 (close)

Shanghai - Composite: UP 1.1 percent at 2,859.54 (close)

Euro/dollar: DOWN at $1.1694 from $1.1724 at 2100 GMT

Pound/dollar: DOWN at $1.3102 from $1.3125

Dollar/yen: DOWN at 111.35 yen from 111.41 yen

Oil - Brent Crude: DOWN 1 cent at $73.06 per barrel

Oil - West Texas Intermediate: DOWN 37 cents at $67.89 per barrel

-- with ABS-CBN News

Asian shares edge up slightly after strong US data

TOKYO - Asian shares were a tad firmer on Thursday, taking their cues from strong US data although holiday-thinned trade and uncertainty about the impact of recent hurricanes on the US economy are likely to keep investors cautious.

MSCI's broadest index of Asia-Pacific shares outside Japan was almost flat while Japan's Nikkei ticked up 0.1 percent.

The Philippine Stock Exchange Index was little changed, up 0.12 percent in early trading. Regina Capital managing director Victor Limlingan said there was no solid driver to sustain the market's gains.


Trade is expected to remain subdued in Asia on Thursday with China, Hong Kong and South Korea closed for public holidays and analysts cautioning against reading too much into index moves.

Wall Street's 3 major stock indexes rallied to fresh highs on Wednesday as did MSCI's all-country world stock index .

The Institute for Supply Management's index of non-manufacturing activity rose to 59.8 in September, its highest reading since August 2005, pointing to the resilience of the vast US services sector despite disruption from two powerful hurricanes.

However, data from private payrolls processor ADP showed monthly hiring slowed to an 11-month low of 135,000 although this was better than economists' median forecast.

"Shares markets were supported as economic data was generally strong," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management.

Economists expect Friday's nonfarm payroll report, one of the most closely watched pieces of economic data in financial markets, to show a similar slowdown.

They estimate a payroll increase in September of 90,000, substantially lower than the average over the past year of around 175,000, though some say investors may need to pay attention to state data due on Oct. 20 to exclude the impact from hurricanes.

The data also helped to lift bond yields off lows, though the market remained in well-worn ranges.

"Because US economic data for August to October is likely to be disrupted by hurricanes, markets may show a much smaller response to them," said Tomoaki Shishido, fixed income analyst at Nomura Securities.

"In that regard, the market will be focusing more on policy issues, such as tax cuts and the choice of the next Fed chair," he added.

High-rated bonds were helped also in part by worries about Catalonia's independence vote from Spain.

Spanish bond yield shot up to the highest level since March, stretching the gap over German benchmarks to the widest in more than five months after Catalonia's secessionist leader said the region will declare independence in "days."

The country's IBEX stock index posted its worst single-day loss in 15 months with a 2.85 percent decline on Wednesday.

Catalonia will move to declare independence from Spain on Monday while Spanish Prime Minister Mariano Rajoy's government called on Catalonia to "return to the path of law" first before any negotiations.

In currency markets, the euro traded little changed at $1.1761, off Tuesday's 1-1/2-month low of $1.16955.

The dollar stood at 112.77 yen, capped below last week's high of 113.26.

Oil slipped after a surprising jump in US crude exports to a record 2 million barrels per day fanned worries about global oversupply.

Brent crude futures hit a two-week low of $55.38 per barrel on Wednesday and last stood at $55.75. US crude WTI futures also hit two-week low of $49.76 per barrel and last traded at $49.90. -- with ABS-CBN News

source: news.abs-cbn.com

Asia shares hit 2008 highs, dollar in decline on Fed inflation view

SYDNEY - Stocks, bonds and commodities were all on a roll in Asia on Thursday as bulls scented a softening in the Federal Reserve's confidence on inflation that promised to keep U.S. interest rates low for longer.

MSCI's broadest index of Asia-Pacific shares outside Japan climbed 0.5 percent to heights not seen since January 2008. It has gained nearly 5 percent so far this month.



South Korea added 0.6 percent and Australia 0.2 percent, while Japan's Nikkei was kept flat by a firmer yen.

The Philippine Stock Exchange Index opened at 8,071.22, up 0.42 percent.

The latest rush for risk came after the Fed left U.S. rates unmoved as expected on Thursday but the market seized on tweaks in its wording on inflation.

It noted that both overall and core inflation had declined and removed the qualifier "recently", perhaps suggesting concerns the slowdown might not be temporary.

The Fed also said it expected to start winding down its massive holdings of bonds "relatively soon", cementing expectations of a September start.

While that would be an effective tightening in financial conditions it might also lessen the need for actual hikes in rates, which matter more for currency valuations.

"The dollar's biggest problem is it can't expect help from the Fed for a long time," said Alan Ruskin, global head of forex at Deutsche.

"In the short-term we are still in a risk-favorable loop, whereby subdued goods and services inflation supports a well behaved bond market and asset inflation. It's just another day in paradise."

A Reuters poll showed most primary dealers, the banks authorized to trade directly with the Fed, still see the Fed's next rate rise in December. But Fed funds rate futures are pricing in less than 50 percent chance of a hike by then, compared to more than 50 percent before the Fed's meeting.

DOLLAR BREAKS LOWER

Yields on U.S. 10-year debt duly fell 5 basis points and were last at 2.28 percent.

The dollar followed, falling to a 13-month trough against a basket of currencies at 93.370. It was last down around 0.2 percent at 93.444.

The euro, which had been bumping up against a 23-month top for most of the week, finally broke through to reach $1.1742 , its highest since January, 2015.

The next major chart target was the 200-week average at $1.1807 - a measure the euro has not traded above since August 2014.

Indeed, the dollar was fast approaching the 200-week barrier on both the Canadian and Australian dollars and breaks would be technically bearish.

The dollar even fall back on the yen to 111.04, though the damage was limited by expectations the Bank of Japan would keep its super-easy policies in place longer than most other global central banks.

The prospect of U.S. policy staying stimulative saw Wall Street's fear gauge touch a record low. The Dow ended Wednesday up 0.45 percent, while the S&P 500 added 0.03 percent and the Nasdaq 0.16 percent.

Telecoms was the best performer, propelled by a 5.0 percent gain in AT&T after its results. Boeing soared 9.9 percent after beating estimates and Amazon's market worth topped $500 billion for the first time.

The declining U.S. dollar boosted commodities priced in the currency. Spot gold hit a six-week high and was last trading at $1,262.45, while copper reached territory not trod since May 2015.

Oil prices neared eight-week highs as a surprisingly sharp drop in U.S. inventories encouraged speculation a global crude glut would recede.

A bout of profit-taking in early Asia on Thursday saw Brent crude futures ease 11 cents to $50.86 a barrel, while U.S. crude dipped 9 cents to $48.66.

(Editing by Kim Coghill)

source: news.abs-cbn.com

Local mining stocks on spotlight after Duterte's 2nd SONA

Local mining stocks will be on the spotlight after President Rodrigo Duterte made a stern warning against irresponsible miners during his second State of the Nation Address (SONA). But ahead of that much-awaited speech, Philippine shares closed lower. - Business Nightly, ANC, July 24, 2017

source: news.abs-cbn.com

Stock Picks: EEI, EastWest, Semirara

MANILA – Papa Securities research head Ramon Kabigting recommends shares of EEI Corp, which has been tapped to help build the MRT-7.

Kabigting’s stock picks also include EastWest Banking Corp and Semirara Mining and Power Corp. -- ANC, Market Edge with Cathy Yang, July 3, 2017

source: news.abs-cbn.com

Asian shares flat, still on track for winning week

TOKYO - Asian shares flatlined on Friday but remained on track for a weekly gain, while crude oil prices pulled away from this week's 10-month lows.

MSCI's broadest index of Asia-Pacific shares outside Japan was nearly unchanged on the day, and was up 0.4 percent for the week.

Japan's Nikkei stock index added 0.1 percent, on track to log a rise of 1 percent for a week in which it touched its highest levels since August 2015.

"The actual macro situation in Japan is pretty good," said Ed Rogers, head of Rogers Investment Advisors in Tokyo, who noted the country's streak of five quarters of positive gross domestic product numbers.

He said the dollar remained bolstered against the yen by the Federal Reserve's move to hike interest rates last week and leave the door open for further monetary tightening later in the year.

"We're not seeing global inflation, but we think the Fed will continue to move. That stone's rolling down the hill," Rogers said.

The Philippine Stock Exchange Index was at 7,814.01 around midday.

Longer-term, that will support the dollar and underpin Japanese shares, he added.

The dollar index, which tracks the greenback against a basket of six major rivals, was down 0.1 percent at 97.488 , but up 0.3 percent for the week.

The euro was up slightly on the day at $1.1158 but was down 0.3 percent for the week, while the dollar was steady against the yen at 111.33, up 0.4 percent for the week.

"We're getting close to the end of the month, and fundamentals aside, there will be people selling dollars, so it will be easy for the yen to strengthen next week," said Mitsuo Imaizumi, Tokyo-based chief foreign exchange strategist for Daiwa Securities.

"We also need to keep an eye on the healthcare debate in Washington, because political turmoil tends to undermine the dollar," he said.

U.S. Senate Republicans offered a bill on Thursday to overhaul Obamacare, the next phase in the party's long war against the 2010 law enacted by then-President Barack Obama, though it remained unclear if the bill has enough support to pass the Senate.

On Wall Street overnight, U.S. shares put in a mixed performance, though the S&P healthcare index rose 1 percent and hit its fifth consecutive record close following the release of the Senate Republicans' bill.

U.S. economic data on Thursday showed the number of Americans filing for unemployment benefits rose slightly last week, but remained at levels consistent with a tight labour market. Home prices also increased in April more than expected.

The Mexican peso added 0.2 percent after soaring 1 percent on Thursday as Mexico's central bank board raised interest rates, saying it wanted to anchor inflation expectations and take into account last week's move by the U.S. Federal Reserve to hike borrowing costs.

Crude oil futures pulled further away from this week's lows, though market sentiment remained fragile amid a global crude glut that has persisted despite OPEC-led output cuts.

Brent crude was up 0.3 percent at $45.36 a barrel. U.S. crude futures also rose 0.3 percent to $42.86 a barrel.

Spot gold edged up 0.2 percent to $1,251.35 an ounce, moving away from a five-week low touched earlier this week.

(Reporting by Lisa Twaronite; Editing by Eric Meijer and Richard Borsuk)

source: news.abs-cbn.com

Asian stocks climb as oil crawls up from 10-month low

SINGAPORE - Asian stocks advanced on Thursday as oil prices inched up after hitting a 10-month low overnight on concerns over a supply glut and falling demand, dragging US and European shares lower.

MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.2 percent.

Japan's Nikkei and South Korea's KOSPI were flat, while Australian shares rose 0.4 percent.

The Philippine Stock Exchange Index opened little changed at 7,882.54.

Crude oil crept up from multi-month lows hit on Wednesday on concerns over growing US production and reduced Chinese refinery activity.

"The time for contrarian trades in oil is fast approaching, but I would want to see some stability in price and the technicals start to become more convincing," said Chris Weston, chief market strategist at IG in Melbourne.

US crude futures rose 0.3 percent or 13 cents to $42.66 a barrel. They closed down 1.6 percent on Wednesday after touching their lowest level since August.

Global benchmark Brent climbed 0.2 percent or one cent to $44.92. It closed down 2.6 percent on Wednesday after touching a seven-month low.

The resulting decline in oil stocks hit stocks in Europe and on Wall Street overnight.

Britain's FTSE, Germany's DAX and France's CAC 40 closed between 0.3 percent and 0.4 percent lower.

The Dow Jones Industrial Average closed down 0.3 percent, while the S&P 500 was slightly lower. Nasdaq closed up 0.7 percent, lifted by biotech stocks.

Financial stocks also contributed to losses on Wall Street, driven lower by a drop in the Treasury yield curve to its flattest in almost a decade, as investors tried to reconcile a hawkish Federal Reserve with deteriorating inflation measures.

Boston Fed President Eric Rosengren and Fed Vice Chair Stanley Fischer suggested they are concerned less about raising rates too fast or too high than about keeping them too low for too long.

“I think the market may be pricing in a little higher odds of another rate hike before the end of the year, and that is helping drive some of the flattening,” said Gennadiy Goldberg, an interest rate strategist at TD Securities in New York.

The yield curve between five-year notes and 30-year bonds flattened to as low as 95.20 basis points, the narrowest since December 2007, on Wednesday and again early on Thursday.

The dollar was marginally lower on Thursday. The dollar index was at 97.523, following Wednesday's 0.2 percent loss.

The greenback bought 111.41 yen.

Sterling retained Wednesday's 0.3 percent gain to trade at $1.268 early on Thursday after the Bank of England's chief economist said he was likely to vote for an interest rate hike this year. Until now, he has been seen as largely supportive of keeping rates low.

The euro was flat at $1.117, holding on to Wednesday's 0.3 percent gain.

Spot gold rose 0.3 percent to $1,250.06 an ounce.

(Reporting by Nichola Saminather; additional reporting by Karen Brettell; Editing by Kim Coghill)

source: news.abs-cbn.com

Nikkei nears two-year high as US hi-tech rebound boosts mood

TOKYO - Japan's Nikkei rose more than 1 percent to hit a near two-year high on Tuesday following a rebound in US hi-tech shares as investors bet on solid growth in the economy and corporate profits globally.

MSCI's broadest index of Asia-Pacific shares outside Japan was little changed in early trade.

A big focus for Asia is whether index provider MSCI will later in the day open up its Emerging Markets Index to Chinese mainland shares which have restricted access for foreign investors.

Many investors expect the so-called A shares that make up the majority of China's stock market are likely to be included after being rejected on three previous occasions.

The Philippine Stock Exchange Index opened little changed at 7,943.72.

Wall Street's S&P 500 and the Dow industrial average hit record highs as technology shares bounced back after some sudden falls earlier this month.

"Hi-tech shares just went through a correction. Their valuation is not that expensive, standing far below their levels at the peak of dot-com bubble in 2000. Given that their profits are expected to see exponential growth in coming years, it is premature to say the rally in hi-tech shares is over," said Mutsumi Kagawa, chief global strategist at Rakuten Securities.

US financial shares also gained as US debt yields rose after New York Fed President William Dudley, a close ally of Fed Chair Janet Yellen, said US inflation should rebound alongside wages as the labour market continues to improve.

The 10-year US Treasuries yield edged up to 2.191 percent from seven-month low of 2.103 percent touched on Wednesday following surprisingly weak US inflation data.

"Even though the Federal Reserve is about to shrink its balance sheet, possibly as soon as in September, US bond yields are kept at low levels, which are very comfortable for stocks," said Norihiro Fujito, senior investment analyst at Mitsubishi UFJ Morgan Stanley Securities.

"Trade volume is light and whether the market continues to rise depends on whether large cap tech shares continue to rebound," he also said.

The rebound in US bond yields helped to lift the US dollar. The euro traded at $1.1148, just above its two-week low of $1.11315 set on Thursday.

The British pound slipped slightly to $1.2732 from Monday's high of $1.2814, held back by uncertainty over domestic politics and over Britain's economic future, as formal Brexit negotiations got under way on Monday.

Oil prices flirted with this year's lows as market players saw more signs that rising crude production in the United States, Libya and Nigeria undercut OPEC-led efforts to support the market with output curbs.

Brent crude futures traded at $47.01 per barrel, up 0.2 percent on the day but not far from last week's low of $46.70 and five-month low of $46.64 touched in early May.

US crude futures stood at $44.28 per barrel, about a half cent above its five-month low of $43.76 set on May 5.

Safe-haven gold hit one-month low of $1,243.3 an ounce As risk sentiment improved.

source: news.abs-cbn.com

Asian stocks retreat, dollar holds near 6-week high on hawkish Fed

SINGAPORE - Asian stocks retreated on Thursday, taking their cues from a subdued session on Wall Street, while the dollar retained gains made after the Federal Reserve's hawkish policy statement.

At the end of its two-day meeting, the Fed kept its benchmark interest rate steady as expected, but downplayed weak first-quarter economic growth and emphasized the strength of the labor market, a sign it was still on track for two more rate increases this year.

Futures traders are now pricing in a 72 percent chance of a June rate hike, from 63 percent before the Fed's statement, according to the CME Group's FedWatch Tool.

The dollar was slightly higher at 112.78 yen, close to the highest since March 20 touched earlier, after surging 0.6 percent on Wednesday to close at the session high.

The dollar index, which tracks the greenback against a basket of trade-weighted peers, climbed 0.1 percent to 99.323, building on Wednesday's 0.2 percent jump.

"The key over the coming weeks will be the economic data from the US but, in addition, the (Fed) will be closely watching Washington and negotiations surrounding the new administration’s tax cut plans," said Lee Ferridge, head of multi-asset strategy for North America at State Street Global Markets.

"Should the data hold up (or better still, improve from here), while the chances of a late summer tax cut agreement remain intact, then the market will likely price in a June move."

Attention now turns to US non-farm payrolls for March, due on Friday, after separate data showed private employers added 177,000 jobs in April. That was higher than expected but the smallest increase since October.

Economists polled by Reuters expect US private payroll employment likely grew by 185,000 jobs in April, up from 89,000 in March.

MSCI's broadest index of Asia-Pacific shares outside Japan slid 0.5 percent on Thursday, dragged lower by commodities, energy and financials stocks.

The Philippine Stock Exchange Index bucked the regional downturn, up 0.88 percent to 7,749.82 in noon trading.

Japan is closed for the Golden Week holiday.

Chinese stocks were down 0.3 percent, after growth in China's services sector cooled to its slowest in almost a year in April as fears of slower economic growth dented business confidence.

Hong Kong's Hang Seng dropped 0.6 percent.

Australian shares were 0.3 percent lower.

"May is a notoriously cruel month for Asia with foreign exchange, equities and domestic bonds all losing in historical average returns," Bank of America Merrill Lynch strategists led by Claudio Piron wrote in a note.

South Korea's KOSPI bucked the weaker trend, jumping 0.6 percent and hovering just a touch below an all-time high hit earlier in the session on strong corporate earnings.

Overnight, Wall Street closed flat to lower.

The Nasdaq fell 0.4 percent as Apple shares slid after reporting lower than expected iPhone sales on Tuesday.

Facebook and Tesla also dropped during the session and after hours despite upbeat quarterly results, also weighed on the index.

Political concerns, which have taken a backseat recently, may re-emerge, with a US House of Representatives vote on a revised bill to repeal Obamacare due later in the session after two failed attempts to corral enough support to pass the legislation.

House Majority Leader Kevin McCarthy said Republican leadership is confident there is enough backing for the bill to pass, after key moderate leaders met with President Donald Trump on Wednesday. Even if the bill passes the House, it could face an uphill battle in the Senate.

In Europe, Germany ended higher but Britain and France closed lower. The pan-European STOXX 600 index lost 0.04 percent to slip from a 20-month high.

The euro was steady at $1.0889 early on Thursday, after losing 0.4 percent on Wednesday.

Following a debate between French far-right leader Marine Le Pen and centrist Emmanuel Macron, who will face off in the second round of the Presidential election on Sunday, a poll showed some 63 percent of voters found market favorite Macron to be more convincing.

In commodities, oil prices slipped on Thursday after a smaller-than-expected decline in US inventories last week.

US crude pulled back 0.25 percent to $47.69 a barrel. On Wednesday, they touched their lowest level in over five weeks before closing higher.

Global benchmark Brent fell 0.2 percent to $50.68.

Gold inched up 0.2 percent to $1,240.40 an ounce, making up some of Wednesday's 1.5 percent loss, but the stronger dollar capped gains.

source: news.abs-cbn.com

Shares open higher on Wall Street rally

MANILA – Share prices opened higher on Wednesday as strong corporate earnings in the US fueled a rally on Wall Street.

The Philippine Stock Exchange was up 0.11 percent to 7,708.85. The peso opened at P49.67 to the dollar from P49.675 on Tuesday.

Foreign investors are returning to the Philippines and other emerging markets on expectations the Federal Reserve would raise rates twice more this year, instead of three times as some feared, BPI Securities research head Haj Narvaez said.

“It’s really fund flow driven,” Naravez told ANC’s “Market Edge with Cathy Yang.”

The local stock rally has room to extend since foreign funds are net sellers year to date, Narvaez said.

source: news.abs-cbn.com

Asian markets mixed on oil drop, Fed jitters

Philippine shares tumbled on Tuesday amid a mixed trading session in the region. Meanwhile, BPI buys into a rural bank while Calata Corp. expands into the real estate business. Michelle Ong with this report. -- ANC Business Nightly, August 23, 2016

source: www.abs-cbnnews.com

Cemex debuts on PSE

MANILA - Cement giant Cemex Holdings Philippines made its debut on the Philippine Stock Exchange on Monday in one of the Philippines' biggest initial public offerings at the stock exchange.

Shares in the Philippine subsidiary of Mexican cement maker Cemex opened at P11.20, 4.2 percent higher than their IPO price of P10.75.

Cemex raised P25.13 billion in the Philippines' biggest IPO since 2013.

Cemex is offering over 2 billion shares with an option to sell another 304 million shares to cover additional demand. The IPO shares represent 45 percent of the company's capital stock.

The company said proceeds will be used to pay debts.

Cemex president and chief executive Pedro Jose Palomino said the company plans to invest $300 million building a cement plant with a capacity of 1.5 million tons to begin operations in the second half of 2019.

The firm is banking on the new government's pledge of massive infrastructure spending as well as a private sector construction boom.

"They are listing at a good time because there's a lot of optimism in the market," said Martin Enrile, head of equity investments for BPI Asset Management. "Our market is rather at a pricey level but it continues to be driven by foreign inflows."

The main stock index hit a 15-month high on Friday. The Philippine bourse is the second best-performing in Southeast Asia, gaining 15.5 percent year-to-date, next only to Thailand's 15.8 percent.

"Given the fact valuations are once again elevated, there is an incentive for companies to raise capital," April Lee-Tan, head of research of COL Financial Group, told Reuters.

Several IPOs had been put on hold due to market volatility. IPOs in the pipeline include Datem Inc., D.M. Wenceslao & Associates Inc. and Pilipinas Shell Petroleum Corp., a subsidiary of Royal Dutch Shell PLC. -- With Reuters

source: www.abs-cbnnews.com

NASDAQ hiring 50 staff members in Manila this year

New York-based trading platform NASDAQ said Wednesday it was hiring 50 more people in its Manila office this year, boosting its workforce in one of Asia's fastest-growing economies by 20 percent.

The company's 250-strong Manila staff currently helps design the websites of the world's largest companies and does financial analysis. Around 10 people are engaged in voice services, said site general manager Emmanuel Sarte.

Sarte said he hoped to grow the workforce to as many as 400 next year, enough to fill up NASDAQ's office in the Bonifacio Global City.

The Philippines is among the five most important NASDAQ hubs in the world, Senior Vice President for corporate global solutions Gregory Lipper said.

NASDAQ is the provider of the trading platform used by the Philippine Stock Exchange, the X-Stream engine.

source: www.abs-cbnnews.com

Corporate earnings reports to direct stock trading: analyst

Investors will look to corporate earnings for trading cues with possible profit-taking as they stay largely on the sidelines ahead of an impending leadership change in June, an analyst said Wednesday.

The Philippine Stock Exchange Index opened 0.27 percent lower to 7,192.07.

"There should be some sideways trading. The index will move within a very specific range," BPI deputy head of research Jomar Lacson told ANC’s "Market Edge with Cathy Yang."

"There will be some disappointments along the way, which may weigh the index down. I don’t think this is too volatile but definitely we will be trading in a specific range," he said.

Lacson said there could be "some selling" due to profit taking, but not necessarily due to concerns over who would win in the May 9 presidential elections.

"If you’re talking about liquidity alone, there is no immediate factor that would push foreign outflows to rise beyond the current levels we are experiencing," he said.

Tough-talking Davao City Mayor Rodrigo Duterte is the frontrunner to replace President Benigno Aquino, according to opinion polls.

An April 12-17 survey by ABS-CBN and Pulse Asia Inc. showed Duterte widened his lead over erstwhile frontrunner Poe by 12 points.

source: www.abs-cbnnews.com

Nickel miner TVI defers PSE until Feb. 29

MANILA - Nickel miner TVI Resource Development (Phils.) Inc. (TVIRD) has deferred a planned listing on the Philippine Stock Exchange to Feb. 29 next year, subject to market conditions and regulatory approvals, shareholder TVI Pacific Inc. of Canada said.

Delays in regulatory approvals, which TVI said was partly due to local public holidays, had prompted it to postpone the initial public offering.

The miner was previously looking at a Dec. 18 listing after a 1 billion peso ($21 million) IPO intended to fund a gold and silver mining project.

"TVI remains optimistic about the prospects for the IPO in early 2016 given TVIRD's diverse pipeline of projects and the strong support of its majority shareholder, Prime Resource Holdings Inc.," Clifford James, chairman and CEO of TVI and chairman of TVIRD, said in a statement.

TVIRD has filed an updated IPO prospectus and is still looking to sell up to 272.02 million primary shares and up to 136.01 million shares currently held by existing shareholders, at a price of up to 3.71 pesos per share.

"We believe the establishment of a public market for TVIRD shares will allow North American investors to better evaluate the value of TVI's 30.66 percent indirect interest and provide us with a potential source of non-dilutive funding," James said.

After market volatility took its toll on local listings this year, the country's bourse expects a busy year ahead with Philippine companies likely to raise as much as 200 billion pesos in fresh equity capital via share sales.

source: www.abs-cbnnews.com

Want to invest in the stock market? Read this

MANILA - Be careful when investing in the stock market.

The Philippine Stock Exchange (PSE) issued this warning amid reports that scammers who are not licensed to solicit funds have been targeting potential stock market investors.

"We are alarmed by reports that have reached us on unscrupulous practices that are perpetuated to scam potential stock market investors. These practices not only cheat the victims of their money but also unduly stains the reputation of the stock market among retail investors," PSE president and chief executive Hans Sicat said in a statement.

The PSE advised investors to open their own account with PSE-accredited brokerage firms and to transact only with employees of their chosen brokerage firm.

The investing public is also being urged to be wary of investment solicitations that offer share prices at discounted prices as some of these schemes may include offering supposed shares of employee stock option plans.

"While it is true that some employee stock option plans may be offered at discounted prices, the PSE approves these provided their distribution is confined to employees of companies offering the plan as part of their benefits. Also, always ask for a receipt when making investments in the stock market and the receipt must be issued by the licensed broker," Sicat said.

The public is also warned against solicitations for stock market investments that guarantee returns on investment.

PSE said that to attract investors, the scammers make it appear that opening an account with a broker is a complicated transaction and that the process can be made easier if the investment is made directly in the account of the perpetrators than with an accredited broker.

"All information about PSE-accredited brokerage firms are posted on the website of the Exchange. Inquiries on how to invest may be coursed through the PSE through telephone number 819-4100 or via email at pird@pse.com.ph. Complaints on stock market investment scams may also be raised through the contact information mentioned," the PSE said.

source: www.abs-cbnnews.com