Stocks climb as traders eye China stimulus

PSEi June 16, 2023

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STOCKS rose for a second day on hopes China will unveil fresh measures to kickstart its ailing economy, while the dollar struggled to bounce from losses fueled by bets the Federal Reserve is near the end of its tightening cycle.

The 30-company Philippine Stock Exchange index gained 46 points, or 0.73 percent, to close at 6,508.34, as four of the six subsectors advanced, with services leading the way.

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The broader all-shares index went up 23 points, or 0.67 percent, to settle at 3,467.11, on a value turnover of P53 billion. Gainers led losers, 96 to 81, while 43 issues were unchanged. Five of the 10 most active stocks ended in the green, led by International Container Terminal Services Inc. which climbed 3.86 percent to P202.00 and SM Prime Holdings Inc. which went up 2.56 percent to P34.00.

The peso also inched up 0.15 percent to close at 55.86 against the US dollar from 55.94.

Most Asian markets traded higher as optimism is seeping through trading floors after the US central bank on Wednesday decided against lifting in- terest rates, with data suggesting the 10 previous straight hikes were beginning to kick in.

That was followed by a cut by the People’s Bank of China that compounded speculation that authorities are about to announce measures to help fire growth as the post-zero-Covid recovery runs out of steam.

A series of lackluster economic indicators in recent weeks have added to worries about the outlook for the world’s number two economy.

Inflation is just 0.2 percent, factory activity contracted for the second consecutive month in May, retail sales slowed further last month and youth unemployment has hit a record high.

AIRCRAFT FACILITY.

French President Emmanuel Macron (center) shakes hands with a worker during a visit to the Safran Aircraft Engine site in Villaroche, near Paris, on June 16, 2023. AFP