Stocks rose for a sixth day, sending the benchmark index above the 8,000-point level for the first time in 15 months, as prospects for looser monetary policy worldwide spurred demand for riskier assets.
The Philippine Stock Exchange index, the 30-company benchmark, advanced 73 points, or 0.9 percent, to close at 8,030.06 Friday, the highest since it settled at 8,056.49 on April 14, 2015. The bellwether reached a peak of 8127.48 on April 10 of the same year. It was also up 15.5 percent since the start of the year.
The heavier index, representing all shares, also climbed 29 points, or 0.6 percent, to close at 4,841.30 Friday, on a value turnover of P11.1 billion. Advancers outnumbered losers, 111 to 80, while 43 issues were unchanged.
Seventeen of the 20 most active stocks ended in the green, led by Boulevard Holdings Inc. which jumped 17.1 percent to P0.102 and Nickel Asia Corp. which climbed 5 percent to P6.08. Metro Retail Stores Groups Inc. gained 4.3 percent to P5.06, while PLDT Inc. rose 3.2 percent to P2,154.
Meanwhile, Asian stock markets climbed for a fifth-straight session Friday following yet another record close on Wall Street and after China released data showing the economy grew more than expected in the second quarter.
Traders were on course to end one of the best weeks this year on expectations central banks around the world will ramp up stimulus measures, while a strong reading on US jobs last week also fired up confidence.
The buying was given more impetus Friday when Beijing said the world’s number two economy grew 6.7 percent in April-June, better than the 6.6 percent forecast in an AFP poll and the same as the previous three months.
It was also better than the 6.5 percent minimum targeted by the leadership for the year, and provided hope that a growth slowdown that has dragged on the economy for years may be bottoming out.
The upbeat mood was enhanced by figures released at the same time that showed retail sales rose far more than forecast –dealing a boost to authorities attempts to retool the economy to one driven by domestic consumers rather than exports and investment.
“China is on track for achieving this year’s growth target,” said Zhu Haibin, JP Morgan China chief economist. However, he warned that “investment continues to be on the weak side, especially private investment”.
Shanghai stocks ended flat, however, and Hong Kong gained 0.2 percent in late trade. Sydney — where numerous firms with key links to China are listed—added 0.3 percent, and Seoul put on 0.4 percent. With AFP, Bloomberg
