Stocks re­cover on weak China data, MSCI changes

Business World - - THE STOCK MARKET - P.P.C. Marcelo with Reuters

SHARES re­bounded on Tues­day on the back of weaker Chi­nese eco­nomic data and re­bal­anc­ing of the MSCI.

The Philip­pine Stock Ex­change in­dex ( PSEi) closed at 8,379.64 yes­ter­day, up 49.62 points or 0.59% and bounc­ing back af­ter be­ing down for most of the trad­ing day.

The all-shares in­dex closed at 4,913.91, also up 19.29 points or 0.39%.

“Funds are start­ing to take po­si­tions here since China re­ported weaker-than-ex­pected data. The MSCI re­view was also a fac­tor,” PNB Se­cu­ri­ties, Inc. Pres­i­dent Manuel An­to­nio G. Lis­bona said in a text mes­sage.

Chi­nese eco­nomic data were lower than ex­pected, in­clud­ing fixed as­set in­vest­ment growth which be­tween Jan­uary and Oc­to­ber slowed to 7.3%, be­low the 7.4% fore­cast.

Mean­while, the semi­an­nual re­view of the MSCI Global Stan­dard In­dex saw Bri­tan­nia In­dus­tries, Petronet LNG and Vakrangee in­cluded, while Apollo Hos­pi­tals has been re­moved.

For Luis A. Lim­lin­gan, man­ag­ing di­rec­tor at Regina Cap­i­tal De­vel­op­ment Corp., the re­cov­ery of US stocks also boosted the lo­cal mar­ket.

“Philip­pine shares bounced back ahead of the ASEAN ( As­so­ci­a­tion of South­east Asian Na­tions) sum­mit con­clu­sion and the re­lease of GDP ( gross do­mes­tic prod­uct) data. This is in line with US stocks, which slowly gained on Mon­day as uncer­tainty con­tin­ued to swirl around the state of Repub­li­can tax-cut leg­is­la­tion,” Mr. Lim­lin­gan said in a text mes­sage.

US stocks slowly gained on Mon­day, re­cov­er­ing from the neg­a­tive sen­ti­ment brought about by the uncer­tainty sur­round­ing the tax re­form plan of the Repub­li­can Party.

Mean­while, third- quar­ter GDP data are due for re­lease to­mor­row.

“It’s pos­si­ble the mar­ket may con­tinue its up­ward move in the next few ses­sions,” PNB Se­cu­ri­ties’ Mr. Lis­bona said.

Among PSEi’s six sec­toral in­dices, in­dus­tri­als, hold­ing firms, and min­ing and oil gained. Min­ing and oil went up 243.18 points or 1.98% to end at 12,513.83; hold­ing firms climbed 99.42 points or 1.17% to 8,595.96; and in­dus­tri­als rose 101.02 points or 0.91% to 11,094.13.

Mean­while, the other three subindices ended lower. Ser­vices dropped 9.39 points or 0.56% to 1,659.02; fi­nan­cials went down 3.9 points or 0.18% to 2,068.32; and prop­erty de­clined 0.07 points to close at 3,880.42.

De­clin­ing stocks out­paced ad­vancers, 111 to 76, while 51 names closed flat. Value turnover went up to P8.88 bil­lion from Mon­day’s P8.22 bil­lion, with 889.39 mil­lion shares chang­ing hands.

For­eign­ers bought shares for a net in­flow of P55.46 mil­lion, a re­ver­sal of the pre­vi­ous ses­sion’s P1.5-bil­lion net sell­ing.

Most other South­east Asian stock mar­kets also traded cau­tiously on Tues­day, in line with broader Asia, as dis­ap­point­ing Chi­nese eco­nomic data and wor­ries over US tax re­forms hurt risk ap­petite. •

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