The local stock barometer climbed closer to the 7,400 mark on Wednesday as regional markets were perked up by signals that China will offer new economic stimulus measures to counter fallout from the COVID-19 contagion.
The main-share Philippine Stock Exchange index (PSEi) racked up 74.05 points, or 1.01 percent, to close at 7,396.94, tracking mostly upbeat regional markets.
This developed as China hinted willingness to pursue more economic pump-priming to counter the impact of coronavirus, which has now killed over 2,000 people and infected over 75,000, mostly in mainland China.
All counters ended higher, led by the industrial, holding firm and services counters, which all added over 1 percent.
Value turnover for the day amounted to P6.49 billion. There was minimal net foreign buying of P62.97 million.
There were 101 advancers that edged out 91 decliners, while 48 stocks were unchanged.
The PSEi was led higher by global port operator ICTSI, which surged by 3.85 percent.
SM Investments, Ayala Land, URC, BPI and RLC all gained over 2 percent, while Megaworld added 1.77 percent.
Ayala Corp., Security Bank, Puregold, Metro Pacific and AGI also firmed up.
However, SM Prime Holdings and GT Capital both declined by over 1 percent. Jollibee, BDO, DMCI and Globe Telecom also slipped.
In a research note, global credit watchdog Moody’s Investor Service said the downshift in Asia’s growth trajectory appeared to be structural, rather than cyclical. It noted the following:
China, a major source of export demand for the region, is now on a path toward structurally slower growth; the multilateral global trading regime is under increasing threat; there is apparent dilution of US security guarantees in the region that increases geopolitical risks and, longer-term challenges relating to demographics are on the rise.
Additionally, Moody’s said Asia’s deepening integration with global financial systems had increased its susceptibility to capital flow reversals. —DORIS DUMLAO-ABADILLA