The main composite index’s rise wavered on Friday, as profit-taking pulled the market from a strong advance Thursday.
Mining and oil advanced by 0.55 percent, followed by services which climbed 0.24 percent. Holding firms and property both rose by 0.02 percent.SM Prime Holdings Inc. rose the most among index stocks, rising by 1.52 percent to P33.35, while BDO Unibank Inc. declined 3.41 percent to P1.61.40. While analysts have warned that the measures — the boldest in years — will not on their own be enough to get the economy back on track, they have provided some much-needed cheer to investors and raised hopes that the government is listening to calls for major help.
Meanwhile, a Bloomberg report said on Thursday that Beijing is considering pumping a similar amount into the country’s large state-run banks in the first such move of support since the global financial crisis. Hong Kong soared more than three percent in opening trades before paring the gains, while Shanghai was up almost as much — both markets are now more than 10 percent from Friday’s close. The performance was Hong Kong’s best week since 2009 and the best in Shanghai since 2008, according to Bloomberg data.
“Absent concrete policies to expand social safety nets, promote private business investment, and broaden the revenue base of local governments, the spending splurge risks being just a temporary sugar hit.