PH stocks rise on China property support

By Jenniffer B. Austria

THE Philippine Stock Exchange index rose 18.92 points, or 0.30 percent, to close at 6,398.64 amid thin trading Tuesday.

Philstocks Financial Inc. analyst Claire Alviar said the index tracked the performance of the Wall Street overnight driven by bargain hunting. The market traded above the 6,400 level for most part of the day, but still closed a few points lower as market participation remained weak, with net value turnover of P2.81 billion.

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economist Michael Ricafort said the index gained ahead of the US June inflation report which is expected by the markets to ease towards 3 percent from 4 percent in May. Asian stock markets also rose Tuesday, with Hong Kong and Shanghai lifted by China’s moves to support its struggling property sector and authorities’ pledges to further help for the economy. The gains extended in New York and Europe as traders look ahead to the release of key US inflation data this week, which could provide a fresh indication of the Federal Reserve’s interest rate plans.

However, concerns remain about the upcoming earnings season owing to the high valuations, ever-tightening monetary policies, and signs of a slowdown in the economy.

Hong Kong was again one of the best performers on Tuesday, a day after a tech-fueled advance that came after Beijing hit fintech firms Ant Group and Tenpay with big fines and signaled a sector crackdown was almost over.

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On Monday, authorities urged banks and other financial institutions to provide easier terms for ailing developers by renegotiating the terms of their loans, with the aim of ensuring homes under construction are delivered.

And on Tuesday, state-run financial newspapers said more announcements were in the pipeline as well as measures to boost business confidence.

The moves come as the vast property industry in China strains under the weight of enormous debts, with some firms such as Evergrande on the verge of collapse.

The crisis has sent shivers through the world’s number-two economy, which has in turn weighed on global growth.