Stocks rose for the second day, as more companies reported profit growth in the fourth quarter and authorities committed to step in to boost growth in major economies.
The Philippine Stock Exchange index, the 30-company benchmark, gained 51 points, or 0.8 percent, to close at 6,743.95 Tuesday. The bellwether, however, was still down 3 percent since the start of the year.
The heavier index, representing all shares, also advanced 20 points, or 0.5 percent, to settle at 3,887.46, on a value turnover of P6.8 billion. Advancers led losers, 93 to 88, while 38 issues were unchanged.
Sixteen of the 20 most active stocks ended in the green, led by geothermal power producer Energy Development Corp., which surged 5.9 percent to P5.61.
Property developer Megaworld Corp. climbed 3.9 percent to P3.46, while First Gen Corp. rose 3.9 percent to P18.70. Philippine Long Distance Telephone Co. added 3.8 percent to close at P2,280.
Meanwhile, gains on European markets also gave investors confidence to buy again as Shanghai surged more than 3 percent on speculation China is preparing stimulus measures to boost the world’s number two economy.
Chinese stocks were also given a lift by official figures showing bank lending surged to a record high in January, as credit gushed to help boost the flagging economy.
Analysts expect further monetary loosening after six interest rate cuts in the 12 months to November and several cuts in the amount of funds banks keep in reserve.
“Looking ahead, we expect credit growth to remain strong given that the PBoC has kept monetary conditions loose,” Julian Evans-Pritchard, China economist at Capital Economics, said in a research note.
Energy firms were among the big winners, tracking a second successive rally in crude prices, which came after Bloomberg News said Saudi Arabia’s oil minister plans to hold talks with his Russian counterpart in Doha on Tuesday.
The news is a much-needed positive for the oil market, which has been buffeted by a global supply glut, overproduction, weak demand, a slowdown in the world economy and a strong dollar.
Saudi Arabia has insisted that it will not cut production to tackle a global glut unless major producers outside the 13-nation Organization of Petroleum Exporting Countries—including Russia—co-operate.
“These are still very early days and nothing concrete has been agreed, but there is a growing sense that countries could be more flexible, although Riyadh would insist that everyone else contribute to the cut,” Amrita Sen, chief oil analyst at Energy Aspects Ltd in London, said. with AFP