PSEi rises to 6,300 level on China stimulus plan

THE MAIN INDEX climbed to the 6,300 level on Monday, tracking gains of other Asian markets, as sentiment was lifted by China’s planned stimulus measures.

The Philippine Stock Exchange index (PSEi) rose by 0.19% or 12.08 points to end at 6,306.19 on Monday, while the broader all shares index inched up by 0.03% or 1.22 points to 3,722.82.

“The local market managed to extend its climb this Monday… The bourse rose further, joining its regional peers, as China revealed a special action plan to boost its economy’s consumption,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

“Philippine shares built on the sentiment from Friday, managing to close above the 6,300 level,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

China’s State Council unveiled on Sunday what it called a “special action plan” to boost domestic consumption, featuring measures including increasing residents’ income and establishing a childcare subsidy scheme, Reuters reported.

The plan comes as levels of consumer demand in China have suffered various setbacks in recent years, due to factors such as COVID-19 disruptions and a prolonged property slump, chilling the propensity of households to spend and adding to deflationary trends.

The plan was issued to all regions and departments to “vigorously boost consumption, expand domestic demand in all directions, improve consumption capacity by increasing income and reducing burdens,” a report from the Council said.

Pressure has been building on Chinese officials for consumer-focused stimulus measures to fend off deflationary pressures and reduce the world’s second-largest economy’s reliance on exports and investment for growth.

MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 0.9%, while Japan’s Nikkei advanced 0.93%.

Majority of sectoral indices closed lower on Monday. Mining and oil declined by 0.65% or 58.55 points to 8,882.48; property went down by 0.59% or 13.32 points to 2,216.14; industrials dropped by 0.35% or 31.19 points to 8,722.47; and financials decreased by 0.26% or 6.44 points to 2,428.46.

Meanwhile, services increased by 1.57% or 32.27 points to 2,084.76 and holding firms advanced by 0.40% or 21.26 points to 5,232.14.

“Converge ICT Solutions, Inc. was the top index gainer, climbing 3.83% to P17.34. Bloomberry Resorts Corp. was the main index laggard, falling 3.55% to P3.53,” Mr. Tantiangco said.

Value turnover declined to P5.26 billion on Monday with 1.33 billion shares traded from the P6.32 billion with 785.67 million issues exchanged on Friday.

Advancers narrowly beat decliners, 94 versus 92, while 59 names were unchanged.

Net foreign buying went down to P357.25 million on Monday from P365.15 million on Friday. — Revin Mikhael D. Ochave with Reuters