Stocks rally on China state visit

MANILA, Philippines – Share prices rallied for the second straight day yesterday on the back of positive economic news from China, investor optimism on President Duterte’s state visit to China and bargain hunting.

The benchmark Philippine Stock Exchange index (PSEi) rallied by another 150.42 points or 1.99 percent to settle at 7,721.57, while the broader All Shares index surged 74.11 points or 1.66 percent.

All counters ended in positive territory with the property sector recording the biggest increase of 2.39 percent.

Total value turnover rose P12.16 billion as advancing stocks outpaced decliners, 119 to 76 while 40 stocks were left unchanged.

Commenting on yesterday’s session, Justino Calaycay of A&A Securities said positive data from China really perked up the market. “One worry has been taken off the table, for the time being. China appears to have managed a ‘soft landing’ with growth steadying at 6.7 percent in the third quarter,” Calaycay said.

At the same time, he said that until new data in the coming days hints at prospective four quarter performance of the world’s second biggest economy, the crosshairs are refocused on the US Federal Reserve meeting.

Investors are keeping a close watch on the move of the US Federal Reserve, which is widely expected to raise rates in December.

Another positive development that cheered investors is President Duterte’s state visit to China where he is joined by a 400-strong delegation of Filipino businessmen.