Local stocks recover
The local stock barometer rebounded slightly on Tuesday as stimulus hopes across the region replaced concerns about China’s slowing growth.
After a weak start, the Philippine Stock Exchange index recouped 21.96 points or 0.35 percent to close at 6,357.05.
The index initially fell in early trade like most markets in the region following reports that China’s gross domestic product (GDP) growth in the fourth quarter had eased to 6.8 percent, the slowest pace seen since 2009.
In afternoon trading, however, regional markets rebounded as investors bet on greater stimulus from China following the latest growth data.
At the same time, bargain-hunters started to sift through oversold stocks.
At the local market, all counters firmed up except for the mining and oil counter which slumped by 0.92 percent as prospects for global commodities remained gloomy.
Value turnover, however, was thin at P3.69 billion. There were 108 advancers which edged out 45 decliners while 48 stocks were unchanged.
The day’s gains were led by URC, MPI, Bloomberry and Globe which all rose by over 1 percent. ALI, Jollibee, Megaworld, SM Prime, Ayala Corp., and PLDT also contributed to the gains.
Outside of the PSEi, Security Bank was a notable gainer, rising by 2.44 percent on optimism on fourth quarter earnings as well as the recent deal with Bank of Tokyo-Mitsubishi to acquire 20 percent of the bank.
On the other hand, Semirara and FGEN slumped by over 2 percent. BPI and BDO also ended lower.
The PSEi has fallen by close to 22 percent since peaking in April 2015, thereby reaching bear territory. Doris Dumlao-Abadilla
