The local stock market made a small bounce even as investors worry about China’s property debt crisis.
The main index added 23.30 points or 0.34 percent to close at 6,881.20 although sectoral indices were evenly mixed with the Property counter actually leading the advance.
Volume was relatively stable at 860 million shares worth P7.08 billion as loser outpaced gainers 116 to 64 with 51 unchanged.
“Investors bought into Philippine equities, which were perceived to have less exposure to China Evergrande's debt crisis that rocked Wall Street overnight,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He noted that, “China's most indebted property developer has liabilities hovering around $305 billion... The market expects a low recovery ratio and foresees Evergrande's doom to further decelerate the Chinese economy and cast a pall over commodity prices.“
Philstocks Financial Senior Supervisor for Research Japhet Tantiangco said “Late day buying sent the local market higher. Intraday, the local bourse fell to as low as 6,779.19 due to the negative spillovers from worries over China’s property market, in particular, the China Evergrande Group.”
However, he noted that, “Investors took advantage of the market’s preceding 2-day decline which extended to early Tuesday, leading to the positive close. “