Stocks rise on China news

Philippine stocks rose Monday as investors celebrated a recent decision by China, the world’s second-biggest economy, to cut interest rates and as local investors anticipate the release of domestic growth figures on Thursday.

The benchmark Philippine Stock Exchange index (PSEi) rose 0.67 percent, or 48.95 points, to 7,325.13 while the broader all-shares index gained 0.51 percent, or 21.98 points, to 4,300.37.

All sub-indices ended in the green, led by mining and oil, which jumped 1.56 percent, followed by industrial companies, which was up 1.22 percent.

“A rate cut in China is favorable to global economies and the financial markets,” said Astro del Castillo, First Grade Finance Inc. managing director.

The People’s Bank of China last week announced that it was cutting its one-year deposit rate to 2.75 percent from 3 percent to bolster its economy.

“Investors are also positioning ahead of GDP [announcement], though indications are not as bright as first half [growth],” Del Castillo said.

Meanwhile, PSE data showed that 5.32 billion shares changed hands Monday for P7.1 billion. A total of 99 companies

gained as against 80 decliners while 47 companies closed unchanged.

Southeast Asia Cement was the most actively trade issue Monday. This was followed by Universal Robina Corp. (up 2.17 percent to P193.10), Philippine Long Distance Telephone Co. (up 0.40 percent to P2,994), Ayala Corp. (up 1.03 percent to P688.50), and BDO Unibank Inc. (up 1.2 percent to P109.30). Miguel R. Camus