The emerging market stocks rose higher, driving the benchmark index to the biggest weekly gain of the same in the last 30 days, after the Chinese automakers and the Philippine property companies went ahead. The Malaysian shares, on the other hand, declined before the national elections to be held on 5th May. The MSCI Emerging Markets Index increased by 0.2% as it is currently at 1038.92. This week, the gauge has gone ahead by 1.6% and it is poised for its steepest increase since 29th March. Many investors are currently speculating that the Governments will take further measurements to support the economic growth. On yesterday, the European Central Bank cut the benchmark rate to a record low figure and the President Mario Draghi signaled that another reduction may also be made as well. India, on the other hand, lowered the interest rates for the 3rd straight meeting on today in an attempt to revive the growth.
According to the Chief Executive Officer of Midas International Asset Management Ltd., Heo Pil Seok, monetary easing by key countries will probably give risk appetite a boost. Seok added further that global economy is still showing mixed reading and hence, abundant money supply is likely to benefit riskier assets.
The benchmark stock gauge of Philippines, the Philippine Stock Exchange Index went ahead by 1.7% to mark a new record figure. On the other hand, the Shanghai Composite Index experienced an increase of 1.5%. The Hang Seng China Enterprises Index of the mainland companies listed in Hong Kong went ahead by 0.1% as well. The S&P BSE Index, Indian benchmark stock gauge went down by 0.4%.
The gauge denoting the consumer discretionary companies listed in the MSCI’s Emerging Index went ahead by 0.6%, which is the best among the 10 industry groups. Thanks to the Shanghai Securities News report that China will release subsidy policies for the renewable energy cars, BYD, the renowned Chinese maker of electric vehicles, experienced its biggest increase since 6th March. On the other hand, Donfeng Motor Group Co. experienced an increase of 2.9% as well.
Among other companies, Alliance Global Group Inc. went ahead by 3.9%, leading the Philippines stocks higher. Incidentally, Philippines has won the 2nd investment grade debt rating. After announcing increase in April sales of 9.7%, Hyundai Motor Co., the biggest carmaker of South Korea experienced a gain of 2.3%.