The stock market rose Wednesday in step with a broad rally in the region after Chinese equities extended a rebound.
The Philippine Stock Exchange Index gained 21.29 points, or 0.3 percent, to 7,474.10 on a value turnover of P12.7 billion. Losers, however, beat gainers, 94 to 67, with 60 issues unchanged.
Regional stocks are rising on optimism China’s economy is stabilizing and the European Central Bank will take steps to boost growth at its meeting today, said Jonathan Ravelas, chief market strategist at BDO Unibank Inc.
“Quantitative easing by the ECB will boost liquidity and this could find its way into emerging markets in search of better yields,” Ravelas said.
Metropolitan Bank & Trust Co., the second-biggest lender, climbed 2.4 percent to P93.10, while Philippine Long Distance Telephone Co., the largest telecommunications firm, added 0.3 percent to P2,944.
Ayala Land Inc., a major property developer, advanced 1.2 percent to P34.95, while D&L Industries Inc. gained 1 percent to P16.16.
Energy Development Corp., the biggest steam energy producer, dropped 2 percent to P8.42, while retailer SSI Group Inc. of the Tantoco family slumped 2 percent to P10.56.
Puregold Price Club Inc. of retail tycoon Lucio Co declined 1.2 percent to P40, while Nickel Asia Corp., the largest nickel producer, tumbled 3.3 percent to P28.05.
Security Bank Corp., the sixth largest bank, fell 2.6 percent to P144.10, while ISM Communications Corp. lost 3.2 percent to P1.84.
Tokyo shares, meanwhile, fell on Wednesday, countering a broad rally in Asian markets, after the Bank of Japan slashed its inflation forecast and held off fresh easing measures after a two-day meeting.
The yen rose against both the dollar and the euro on the news, however, as traders took solace in the BoJ’s announcement that it was also raising Japan’s growth outlook on signs the economy was rebounding.
Shares in Tokyo’s benchmark Nikkei 225 index closed 0.49 percent lower, falling 85.82 points to 17,280.48. The broader Topix index of all first-section issues was down 0.50 percent, or 7.02 points, to 1,390.61.
Japan was the outlier, however, as a broad rally across Asian markets saw Hong Kong rise 1.48 percent in the afternoon. Shanghai was up 3.87 percent.
Sydney closed 1.62 percent or 85.73 points higher at 5,393.4.
Seoul ended up 0.15 percent, gaining 2.92 points to finish at 1,921.23.
“[BoJ Governor Haruhiko] Kuroda will be under pressure to increase stimulus,” Masamichi Adachi, an economist at JPMorgan Chase & Co., told Bloomberg News.
“It must be getting harder for him to communicate with market participants, with the economy expected to recover while inflation is slowing due to oil [prices falling].” With AFP, Bloomberg