Philippines share prices closed 0.52 percent higher on Friday tracking a rebound in Asian markets after heavy losses on Thursday driven by concerns over the fast growing Chinese economy, dealers said. The Philippine Stock Exchange composite index rose 16.70 points to 3,254.76. It moved between 3,235.69 and 3,267.27.
The broader all-share index rose 9.85 points to 2,072.28. There were 74 gainers and 34 losers with 65 stocks unchanged. Turnover totalled 2.18 billion shares worth 2.27 billion pesos (48.29 million dollars).
The local currency traded at 47.59 to the dollar. "Stocks rebounded after yesterday's panic selling but investors realised the selling was overdone," said Rommel Macapagal of Westlink Global Equities.
Macapagal noted light trading volumes suggested investors were generally cautious, especially after the central bank's announcement late Thursday to keep interest rates on hold and new measures to siphon off excess liquidity.
"Some of those excess funds (of banks) had found their way into the stock market in recent weeks. The central bank's move could thus eventually weigh on the market," he said. The central bank is to introduce new measures to avoid a possible build-up in inflationary pressures amid rapid growth in domestic liquidity.
The new measures, which will take effect from May 10, include luring funds of the state pension funds and other government owned and controlled corporations away from banks. The day's winners include top-traded Philippine Long Distance Telephone Co which rose 15 pesos to 2,515.00. Bank of the Philippine Islands jumped two to 66 while food and beverage firm San Miguel Corp's A and B-shares were unchanged at 65 and 73.50, respectively.
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