Local stock market up on window dressing, hopes of China stimulus
Philippines Stocks Exchange. AP FILE PHOTO
MANILA, Philippines—The local stock index firmed up on Friday on the back of month-end and quarter-end portfolio-buying while regional markets mostly advanced on hopes of monetary stimulus in China.
The Philippine Stock Exchange index gained 43.93 points or 0.7 percent to close at 6,359.62. Friday’s rise allowed the index to post a modest weekly gain of 20.36 points or 0.03 percent.
In previous days, the market discounted the start of a monetary tightening cycle by the Bangko Sentral ng Pilipinas, which indeed raised the reserve requirement on banks by 1 percentage during its monetary setting on Thursday.
The day’s gain was led by the property counter (+1.59 percent). Only the financial counter ended lower.
Turnover amounted to P9.3 billion, including a P736.7 million block transaction on VMC.
There were 82 advancers against 60 decliners while 52 stocks were unchanged.
Foreigners were in a net buying position amounting to P1.13 billion.
The day’s gains were led by ALI (+4.04 percent), SMC (+3.05 percent) and ICTSI (+3.05 percent) while BDO, JGS, URC and Semirara all rose by 1 percent. PLDT, SMIC and AP also contributed to the day’s gains.
On the other hand, GTCAP, BPI and Metrobank fell by over 1 percent. SMPH, AC and AGI also ended lower.
Apart from quarter-end window-dressing activities, trading was upbeat across regional markets after China’s Premier Li Keqiang issued a statement recognizing downward pressures and downside risks to growth while assuring the public that he was well prepared to stabilize growth and to proactively introduce a series of policy measures in an orderly way to ensure growth within his “appropriate zone”.
In a research note on Friday, investment bank BofA Merrill Lynch said this neither meant big fiscal stimulus nor significant monetary easing, some specific growth supportive measures may be expected.
“We believe the market is overly bearish on China and it’s time for investors to regain some confidence,” it said.
