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Market rebounds; Alliance, ALI rise

Stocks rebounded Friday, amid a global equity rally as investors piled back into riskier assets on speculation the Federal Reserve won’t be raising interest rates until risks from outside the US subside.

The Philippine Stock Exchange index, the 30-company benchmark, gained 32 points, or 0.5 percent, to close at 7,138.91.  The index was still down 1.3 percent since the start of the year.

The heavier index, representing all shares, also advanced 16 points, or 0.4 percent, to settle at 4,079.75 on a value turnover of P6.5 billion. Gainers outnumbered losers, 108 to 76, while 35 issues were unchanged.

Da Vinci Capital Holdings Inc., a shell company formerly known as Mariwasa Siam Holdings Inc., emerged as the biggest gainer among the 20 most active stocks, as it climbed 9.3 percent to P2.  Alliance Global Group Inc., the holding company of tycoon Andrew Tan, jumped 7.7 percent to P18.46. Property developer Ayala Land Inc. rose 3.4 percent to P37.60.

Meanwhile, Asian stocks rose as about $2.46 trillion was added to the value of global stocks in the first four days of this week as emerging-market equities rebounded. An MSCI gauge of developing-economy stocks is set for its best week in almost four years as the Hang Seng China Enterprises Index heads toward a gain of more than 8 percent across five days.

The ringgit and Indonesia’s rupiah both gained more than 6 percent since last Friday, sending the Bloomberg JP Morgan Asia Dollar Index toward a two-month high. Zinc surged as Glencore Plc said it would cut production.

“This looks like a sustainable turnaround,” Michael McCarthy, chief market strategist in Sydney at CMC Markets, said by phone. “Investors have become less pessimistic. Things are definitely not in a strong economic environment but there is an expectation of further central bank support.”

Asian equities pushed higher after minutes from the Federal Reserve’s latest policy meeting suggested it could keep borrowing costs at record lows into next year.

The gains across assets come after a painful July-September quarter that saw trillions wiped off global markets owing to worries about the state of China’s economy and an expected US interest rate hike.

On Thursday, minutes from the Fed’s closely watched September policy board meeting showed some members were concerned about China’s struggles, the strong dollar and persistently low inflation.

“Recent global and financial market developments might restrain economic activity somewhat as a result of the higher level of the dollar and possible effects of slower economic growth in China and in a number of emerging market and commodity producing economies,” the minutes said. With AFP, Bloomberg

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