Stocks rebounded Friday, on optimism that central banks globally will step up to support growth in the face of uncertainty caused by Britain’s vote to quit the European Union.
The Philippine Stock Exchange index, the 30-company benchmark, rose 34 points, or 0.4 percent, to close at 7,830.35, the highest in 13 months, or since settling at 7,835.38 on May 21, 2015. The bellwether was up 12.6 percent this year.
The heavier index, representing all shares, gained 17 points, or 0.4 percent, to finish at 4,738.03, on a value turnover of P11.2 billion. Advancers outnumbered losers, 100 to 83, while 51 issues were unchanged.
Eleven of the 20 most active stocks ended in the green, led by Now Corp. which climbed 11.7 percent to P3.24 and Metro Retail Stores Group Inc. which advanced 2.5 percent to P4.14. SM Investments Corp. rose 2.4 percent to P990.
Golden Memorial Park Inc., the newly listed memorial developer controlled by the Villar Group, fell 5.4 percent to P19.20, after surging over the past two days.
Meanwhile, most Asian stocks traded higher Friday, as authorities moved to soothe concerns over the impact of the British referendum.
South Korea’s promise of $17 billion in stimulus came as speculation swirled that Japan was planning to bolster its own multi-billion-dollar program, while the chances of the US raising interest rates this year have all but evaporated.
On Thursday, Bank of England boss Mark Carney became the latest to provide assurances, indicating policymakers could embark on fresh monetary easing—raising the possibility of a cut in rates.
Carney, who had urged Britain to vote to stay in the EU, said “the economic outlook has deteriorated and some monetary policy easing will likely be required over the summer”, although he said there were limits to what the bank could do.
His comments sent the pound tumbling 1 percent to $1.3314 Thursday, having risen to $1.35 before his comments. On Friday in Asia it bought $1.3300, although it is well up from the 31-year-low $1.3121 at the start of the week. With AFP