The PSE market index managed to continue its recovery after the rout from China’s property giant Evergrande said it is agreeing to a deal to avoid default on its debt due this month. The index ended with a 0.14% gain for the day but could have been higher if not for the pre close profit taking

Global indexes tumbled a few days back significantly after the news of Evergrande spread where financial institutions globally feared a possible recurrence of LEHMAN Brothers default last time that cause the 2008 financial crisis

Bloomberg News calculated a debt payment of worth 232 million yuan ($35.9 million) was negotiated by Evergrande in a statement to the Shenzhen stock exchange today, this was according to Evergrande’s property unit Hengda that it planned to pay interest due on its 2025 bond. The case of Evergrande defaulting has big impact on China economy as it may affect more than 200,000 employess and indirectly helps employ 3.8million jobs.

The index close at 6,890.73with a net foreign buying of 33.16Million.

For the Blue chip index movers, Globe and TEL led the index again where GLO earned 6.83% while TEL is 5.31%.

1GLO 6.83%

2TEL 5.31%

3ACEN 4.23%

4BLOOM 2.81%

5PGOLD 2.41%

6LTG 2.00%

7JFC 1.98%

8SMC 1.82%

9ICT 1.31%

10RLC 0.91%

11AP 0.62%

12JGS 0.48%

13FGEN 0.16%

14URC 0.15%

For the index sector, Services and Mining led the PSE market

The market rebounded from a low opening of the index (-0.9%) to a good closing of (+0.34%) after investors flock to PLDT (TEL) and Aboitiz Equity Ventures. The market was shaky for the last couple of days due to the news spreading of the defaulting on debt of China’s Evergrande could result to another LEHMAN Brothers if ripples across the financial markets happen

The index move up with a percentage of 0.35% at the close and its value ended to 6,881.20. Net foreign however ended selling with -216,352,763 signifying cautiousness from international investors.

As for the Blue chip index, PLDT and AEV moved the market significantly with a breakout of for TEL (5.96%) and AEV (7.22%)

1AEV 7.22%

2TEL 5.96%

3LTG 5.04%

4MER 1.73%

5CNVRG 1.60%

6SMPH 1.23%

7PGOLD 1.22%

8MPI 1.07%

9BPI 0.55%

10ALI 0.46%

11MBT 0.45%

12AGI 0.39%

13AC 0.13%

Property sector rebounded the most as the fear on the economic impact of Evergrande subsides. It closed at 0.72%

Evergrande of China

The property giant Evergrande caused ripples in the financial markets since yesterday as news about its impending Debt Default circulated on the media. As the stock price of Evergrande slide on the Hongkong index, it currently dropped by -84% from its last year price. Hongkong property index slide by as much as -6.7% due to market sentiment. Evergrande plans to restructure its looming debt of $300Billion dollars through its properties or through cash installments.

US indexes close in the red yesterday with Dow jones at -1.78% and Nasdaq composite at -2.19%