Local share prices ended higher yesterday as investors took to bargain hunting after recent market drops brought by the coronavirus outbreak.
Other Southeast Asian stock markets rose sharply with Indonesia posting its biggest intraday gain in over 4 years, as expectations grew global central banks will ease policies to cushion the economic impact from a fast-spreading coronavirus.
The Philippine Stock Exchange index (PSEi) was up by 41.26 points to 6,790.54, a 0.61 percent hike. The broader all shares index was up by 18.56 points to 4,062.25, a 0.46 percent hike.
Gainers edged losers 108 to 82 with 46 stocks unchanged. Trading turnover reached P5.83 billion.
The peso closed at P50.69 to the dollar, down from P50.63 on Monday. It opened at P50.65, hitting a high of P50.55 and a low of P50.78. Trading turnover reached $1.24 billion.
“Local and regional recovered as the G-7 leaders are planning on leading a global teleconference tonight to discusses actions against the coronavirus outbreak,” said Luis Limlingan, managing director at Regina Capital Development Corp.
Citing statements from the organization for economic cooperation and development (OECD), Limlingan said global growth is seen to sink “to levels not seen in over a decade as the outbreak hammers demand and supply.”
“It warned of a possible global contraction and cut its full-year growth forecast to 2.4 percent from 2.9 percent, which would be the weakest since 2009. Bolstering that claim, global manufacturing contracted in February by the most since 2009,” Limlingan said.
“More deaths were reported in the US. Indonesia reported its first two infected case, and a new surged in new cases in Korea and Italy. Saudi Arabia, Moscow, Brussels and Berlin all reported their first cases,” he added.
Most actively traded Ayala Corp. was up P2.50 to P625. Ayala Land Inc. was down P0.20 to P39.60. SM Prime Holdings Inc. was up P0.30 to P39. SM Investments Corp. was up P1 to P961 while BDO Unibank Inc. was up 5.10 to P137.20.
Equities worldwide took a beating last week as fears mounted that the epidemic could develop into a pandemic and cause recession.
Markets regained some lost ground this week after major central banks indicated readiness to roll out stimulus measures to help cushion the economic blow, with the Reserve Bank of Australia delivering a quarter-point cut on Tuesday.
Investors now await a likely conference call of the Group of Seven finance ministers to discuss measures to deal with the economic impact.
“What we needed was a reason to buy and central banks have been that reason – nothing has really changed in the coronavirus stakes from a global standpoint,” said Chris Weston, head of research at brokerage Pepperstone.
Leading the gains in Southeast Asia, Indonesian equities rose 3.4 percent, and were on track to end a seven-session losing streak.
Consumer and financial stocks led the rally, with Bank Central Asia Tbk PT and agri-business firm Charoen Pokphand Indonesia Tbk PT climbing 4.1 percent and 7.1 percent, respectively.
Singapore shares rose after losing close to 5 percent in the past four sessions, with banks leading the recovery.
Malaysian shares climbed slightly ahead of a central bank meeting.
A Reuters poll showed six of the 11 economists contacted saw the Bank Negara Malaysia cutting its overnight policy rate by 25 basis points to 2.50 percent. The remaining five did not expect any change to the benchmark rate. — Ruelle Albert Castro with Reuters
