Stocks up on China stimulus

Local stocks firmed up at the 7,150 level Monday, reversing early-session losses, as hopes for economic stimulus in China lifted most markets in the region.

The Philippine Stock Exchange index (PSEi) added 11.38 points or 0.16 percent to close at 7,150.29.

Most Asian markets rose on speculation that China would introduce fresh stimulus to avoid a hard landing of its economy. The Shanghai stock index rose more than 3 percent.

“The market seems excited about the upcoming 13th (China) Five-Year Plan, expecting stimulus and other growth-boosting measures,” said investment bank BofA Merrill Lynch in its research note yesterday. “We expect a repackaging of existing policies largely with implementation uncertain, so unlikely a major market driver.”

At the local market, the late-session rebound was driven by the mining/oil counter, which surged 4.12 percent. The services counter likewise rose by 1.05 percent.

The property counter, on the other hand, slipped by 0.73 percent.

Value turnover for the day amounted to P5.8 billion. There were 120 advancers that beat 72 decliners while 32 stocks were unchanged. Foreign investors were net buyers by a modest P30 million.

EDC rose 4.75 percent while Globe and ICTSI gained more than 2 percent. Metrobank and JG Summit added more than 1 percent. AGI, SMIC, SM Prime, PLDT, Meralco and BPI also firmed up. Doris Dumlao-Abadilla