PH stocks bounce back on reports of Aquino’s stimulus plan

MANILA, Philippines—Local share prices recovered from early losses on Wednesday after President Aquino’s announcement of a “stimulus package” that would help the government make up for ground it lost in terms of spending in the first half of the year.

The benchmark Philippine Stock Exchange Index (PSEi) rose 0.25 percent, or 10.44 points, to 4,119.71 on Wednesday, its fourth consecutive session in the green. The broader all-share index rose by 0.31 percent, or 9.08 points, to 2,921.58.

Most sub-indices closed in the green, led by mining and oil that added 1.45 percent, or 308.21 points, to 21,577.62. Services bucked the market uptick and closed in the red, shedding 0.89 percent, or 12.79 points, to 1,424.81. Advancers overtook decliners 91 to 54, while 31 stocks were unchanged.

Top gainers were Metro Pacific Investments (5.42 percent), Belle Corp. (4.46 percent), Alliance Global (2.11 percent), DMCI (2.04 percent), and Megaworld (1.75 percent).

Losers were Philippine Long Distance Telephone (PLDT) (1.90 percent), Philex Mining (0.64 percent), San Miguel Corp. (0.61 percent), Aboitiz Power (0.3344 percent) and Aboitiz Equity Ventures (-0.2451 percent).

On Wednesday, the administration unveiled a P72-billion “stimulus” to pump-prime the economy and prop up the slowdown in domestic output.

Asian policymakers also unveiled various measures to help their respective economies weather the threat of another global slowdown caused by the US and Europe.

Bank Indonesia lowered its reference rates by quarter of a percentage point, while neighboring Malaysia announced a plan to distribute cash to low-income families and raise wages for civil servants.