Local shares were quietly sold down as investors flocked backed into the United States with the peaceful transition of power of Joe Biden as the 46th president.
“The new administration plans to reverse at least some of the Trump administration’s environmental deregulation. Possible changes include stricter fuel efficiency standards, increased renewable energy targets, increased environmental review of proposed infrastructure projects, and reduced exemptions from environmental standards for small fuel refineries,” Regina Capital Development Corp. managing director Luis Limlingan said.
The Philippine Stock Exchange Inc. (PSEI) ended at 7,140.29, down 3.01 points or 0.04 percent as it moved between 7,112.33 and 7,161.07. Trade volume hit 250,247 shares valued at P12.317 billion.
Trading Edge Consultancy Chief Investment Strategist Ron Acoba said the Makati Shangri-la temporary closure shows the extent of economic damage from the coronavirus disease (Covid).
“It may be sad today but it’s a way to stop the bleeding,” he explained.
He sees the market consolidating through the first half as 2022 is priced in. “By the latter part of the year, we may start significantly piercing through 7,300,” he noted.
Best in 4 decades
US markets cheered the Inauguration Day, posting its best returns in almost four decades on the day of the official change in leadership in the White House.
The Dow Jones Industrial Average DJIA rose by 0.8 percent to 31,188.38, while the S&P 500 climbed by 1.5 percent to 3,851.85.
These are their best returns since Reagan’s oath-taking in 1985. Meanwhile, the Nasdaq ascended by nearly two percent towards 13,457.25. The major benchmarks closed at all-time highs as well.
Gold gained by more than a percent. Spot gold settled 1.3 percent higher to $1,863.48 per ounce(/oz). Moreover, the US gold futures rose by 1.2 percent to $1,862.90/oz.
Oil prices were driven by the expectations that Biden will roll out substantial stimulus spending that will stoke fuel demand. Brent crude added 40 cents, to close at $56.30 per barrel (/bl). Meanwhile, the US West Texas Intermediate settled 26 cents up, at $53.24/bl.
Asian markets welcomed Biden’s first day as US president with broad gains Thursday as investors look forward with optimism about his economic and Covid recovery plans.
US markets cheered the Inauguration Day, posting its best returns in almost four decades.
Soon after being sworn in, Biden signed more than a dozen executive orders unwinding some of his predecessor’s policies, including rejoining the World Health Organization that observers say will help in the fight against the devastating disease.