^

Business

Stocks jump on optimism over China’s reopening

Iris Gonzales - The Philippine Star
Stocks jump on optimism over Chinaâs reopening
The benchmark 30-company Philippine Stock Exchange index (PSEi) jumped by 232.25 points or 3.60 percent to close at 6,674.38 while the broader All Shares index added 73.79 points (2.17 percent) to finish at 3,477.72.
pixabay

MANILA, Philippines — Share prices snapped out of a three-session downturn yesterday, with the main index leading the way in Asian emerging markets, as prospects of continued reopening in China ignited a bargain hunting spree.

The benchmark 30-company Philippine Stock Exchange index (PSEi) jumped by 232.25 points or 3.60 percent to close at 6,674.38 while the broader All Shares index added 73.79 points (2.17 percent) to finish at 3,477.72.

A total of P6 billion worth of shares changed hands yesterday, with advancers edging out decliners, 100 to 81, while 46 issues were unchanged.

“The local bourse went up as investors continue to cheer China’s reopening despite the high inflation at home,” Philstocks Financial said in a note.

Annual inflation in the Philippines rose to eight percent in November from a year earlier, well within the projected range of the central bank, but bolstering the case for a half-percentage point interest rate hike this month.

“Given the elevated inflation, especially rising pressure from core services inflation, we continue to expect the BSP (Bangko Sentral ng Pilipinas) to deliver a 50-basis-point hike in its December meeting,” analysts at Goldman Sachs said.

The BSP has raised rates six times this year to meet its annual inflation target of two to four percent. Last week, BSP Governor Felipe Medalla flagged another 25 bps or 50 bps hike at the Dec. 15 meeting.

But in Asia, other emerging stocks trekked lower, hit by regional inflation, extended US Federal Reserve rate hike worries, and a firm dollar.

The services sector, which makes up the biggest part of the US economy, showed surprising growth in November, strengthening the dollar and fueling bets over the Fed maintaining its higher for longer stance on further interest rate hikes.

“Inflation will likely prove to be stickier and with the service part of the economy refusing to weaken. The risks that the Fed might need to do more remain elevated,” Edward Moya of Oanda said in a statement.

STOCK MARKET

Philstar
  • Latest
  • Trending
Latest
Are you sure you want to log out?
X
Login

Philstar.com is one of the most vibrant, opinionated, discerning communities of readers on cyberspace. With your meaningful insights, help shape the stories that can shape the country. Sign up now!

FORGOT PASSWORD?
SIGN IN
or sign in with