Roundup: Philippine shares rebound on US, China stimulus speculation
- Kristine Liu, Doris Dumlao,prima
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E-mail Xinhua, August 23, 2012
Roundup: Philippine shares rebound on US, China stimulus speculation
By Kristine Liu
MANILA, Aug. 23 (Xinhua) -- The Philippine stock market bounced back on Thursday after investors pick bargain issues, buoyed by reports of possible rounds of monetary easing in the U.S. and China.
The bellwether Philippine Stock Exchange index jumped by 0.98 percent or 50.69 points to 5,202.84. The broader all-share index added 0.88 percent or 30.12 points to 3,461.82.
Trading volume reached 1.19 billion shares worth 4.19 billion pesos (99.38 million U.S. dollars) with 94 stocks advancing, 57 declining, and 40 unchanged.
All six counters went up.
"Foreign developments lifted the local market to end its three- day descend since the opening of the Chinese Hungry Ghost month," AB Capital Securities said in its daily stock market report.
Reports circulated among investors on Thursday that "many" members of the U.S. Federal Reserves were optimistic that the another round of monetary stimulus is "fairly" coming "soon".
AB Capital Securities said in its daily stock market report that the central bank left the action as a possibility as long as current efforts remain futile in reinvigorating the U.S. economy.
"Speculations also echo in the eastern borders as China's slip in its manufacturing managers index may trigger a new set of stimulus to halt its decelerating economic growth," the brokerage said.
All these speculations have fueled the stock market's rally on Thursday to the 5,200 level, which the brokerage said the local equities will likely test.
Locally, AB Capital Securities said investors are looking forward to an upbeat second quarter economic growth that may counter the lapsing market performance.
"But for the meantime, investors may shift back to profit- taking ahead of another extended weekend until Monday," it said.
Stocks in the 30-company index were mostly up. These issues include Metropolitan Bank and Trust Co., Ayala Land, Inc. and Ayala Corp.
In other corporate news, Petron Corp., the country's largest oil refiner and distributor, is making a comeback in the PSEi effective Sept. 10, replacing budget carrier operator Cebu Air.
The PSE announced late Wednesday that based on its latest twice- a-year index review of 30 companies comprising the PSEi, the roster of the country's most liquid, largest in market capitalization stocks and most closely watched stocks.
Petron was previously stricken off the PSEi due to tight trading liquidity as it was the subject of several merger and acquisition transactions that resulted in a tender offering that trimmed public float. Enditem
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