SE Asia Stocks-Philippines jumps to 15-month high on dovish cenbank report

16-Jul-2019 Intellasia | Reuters | 6:02 AM Print This Post

* China’s Q2 GDP growth weakest in 27 years

* Indonesia June trade balance lags expectation Philippine shares jumped over 1.5 percent on Monday to their highest in more than 15 months, after a local daily reported of more scope for policy easing quoting the top central bank official, while Indonesian stocks were headed for a fourth session of gains in five.

The Philippine Star newspaper quoted here the central bank governor, Benjamin Diokno, as saying dovish commentary from the US Federal Reserve chair last week,

coupled with a recent uptick in the domestic inflation outlook, had provided more room to cut rates.

“All eyes” were on the governor’s commentary, said Fio Dejesus, an equity research analyst at RCBC Securities. “There is also some optimism moving into the second quarter,because the first-quarter GDP was not stellar,” he added.

The Bangko Sentral ng Pilipinas cut its benchmark interest rate by 25 basis points in May to support growth, after the economy grew weaker than expected in the first quarter.

Risk sentiment was also aided by prospects of further stimulus by China after its economic growth in the June quarter slowed to the weakest in at least 27 years.

“There is no denying (that) trade tensions are indeed coming home to roost in a very real way. In response, we expect that China will unleash an effective and targeted combination of fiscal and monetary easing to avert adverse shocks,” Mizuho Bank said in a note to clients.

Large caps were top gainers in the Philippines, with property developer SM prime Holdings up 1.7 percent, while conglomerate SM Investments Corp added 4.3 percent.

Financial and consumer stocks were top gainers in Indonesia, with Bank Central Asia Tbk rising 1 percent, while cigarette maker Hanjaya Mandala Sampoerna climbed 1.7 percent

Meanwhile, data showed June trade balance came in below expectations.

Thai stocks rose marginally, helped by gains in energy stocks. Malaysian shares fell slightly, while Singapore stocks traded sideways.

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MarketCurrent Previous close percent Move

Singapore 3353.093357.34-0.13

Bangkok1733.28 1731.59 0.10

Manila 8267.42 8141.82 1.54

Jakarta 6415.265 6373.345 0.66

Kuala Lumpur667.64 1669.45 -0.11

Ho Chi Minh975.06975.4-0.03

Change so far in 2019

Market CurrentEnd 2018 percent Move

Singapore3353.093068.76 9.27

Bangkok 1733.281563.8810.83

Manila8267.427,466.02 10.73

Jakarta6415.2656,194.50 3.56

Kuala Lumpur 1667.64 1690.58 -1.36

Ho Chi Minh 975.06 892.54 9.25


Category: Philippines

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