Philippines Stocks Surge Amid Optimism on Pres. Duterte's Trip to China

President Rodrigo Duterte's first state visit to China made a positive impact in the Philippine stocks as it advanced the most in five months amid optimism the his visit to China will improve relations and yield a raft of business deals.

At the close of trading in Manila at 3:30 p.m. local time, the Philippine Stock Exchange Index rose 2.9 percent to 7,571. It is considered as the steepest gain since May 11. Some of the most prominent businesses owned by Filipino-Chinese businessmen rise significantly. SM Prime Holdings Inc., of mall developer Henry Sy, which operates malls in the Philippines and China, jumped 6.5 percent, while another Filipino-Chinese business owner Tony Tan Caktiong of Jollibee Foods Corp. added 4 percent.

According to James Lago, head of research at PCCI Securities Brokers Corp. in Manila, there is optimism that the pivot to China will yield results. He added further that the Philippine market is also at such oversold levels already that valuations are now more reasonable.
The 71-year-old President from Mindanao, Pres. Rody Duterte started his four-day state visit to China on Tuesday, bringing with him more than 400 business leaders, including some of the wealthiest Philippine tycoons.

The meeting with Beijing will provide an opportunity for a reset of relations with the country's biggest trading partner, which have been strained by territorial disputes in the South China Sea or the West Philippine Sea.

Aside from SM Prime Holdings and Jollibee's positive results in the Philippine Stock Market other investors such as SM Investments Corp., parent of SM Prime, climbed 4.1 percent, while JG Summit Holdings Inc., the operator of Robinsons, Cebu Pacific and Universal Robina, jumped 6.6 percent. Bloombery Resorts Corp. also rose by 3.1 percent.

The Philippine Central Bank also announced that based on their data gathered on Monday it showed that money sent home by Overseas Filipino Workers in August grew 16.3 percent, three times the average of economists estimates in a Bloomberg survey.

Source: Bloomberg Markets

Philippines Stocks Surge Amid Optimism on Pres. Duterte's Trip to China Philippines Stocks Surge Amid Optimism on Pres. Duterte's Trip to China Reviewed by Phil Newsome on 10/20/2016 Rating: 5

No comments:

Powered by Blogger.