Stocks surge; Megaworld climbs

The stock market jumped Monday, boosted by falling oil prices in the world market and the latest interest rate hike that that could have successfully tempered rising inflation.

The Philippine Stock Exchange Index surged 186.92 points, or 2.6 percent, to 7,270.26 on a value turnover of P8.3 billion. Gainers beat losers, 107 to 81, with 49 issues unchanged.

The Organization of Petroleum Exporting Countries may reduce output as “oil prices have entered into a bear market, falling over 20 percent from the peak in early October when Brent was at $86 per barrel,” said Margaret Yang Yan, market analyst at CMC Markets Singapore.

Traders are also betting a rate hike last week by the central bank will help attract more foreign investment and temper inflation.

GT Capital Holdings Inc. of tycoon George Ty advanced 6.6 percent to P860, while Megaworld Corp., the biggest lessor of office spaces, climbed 6.2 percent to P4.62.

PLDT Inc., the largest telecommunications firm, rallied 6.1 percent to P1,236, while ISM Communications Corp., a member of the group that was selected as the country’s third major telecommunications company, rose 5 percent to P8.20.

The rest of Asian markets mostly rose Monday but investors were keeping a close eye on the China-US trade row after Donald Trump’s optimistic comments on a possible deal were offset by a war of words between his vice president and Xi Jinping.

Still, investors in Asia were in a buying mood Monday as they picked up bargains.

Hong Kong rose 0.6 percent and Shanghai added 0.9 percent while Tokyo ended 0.7 percent higher.

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