1. Philippine stocks rose Monday on excess domestic liquidity and speculation over companies linked to the planned sale of a controlling stake in Philippine Commercial International Bank, traders said. 2. Recapitalisation of banks and rising numbers of acquisitions in the real sector will help increase domestic liquidity to stimulate spending in the economy. 3. A Bangkok Bank research report expected domestic liquidity to continue to be tight this month as the seasonal demand for money before the end of the year increases. 4. Capital outflows and a lack of confidence in some financial institutions have also put pressure on domestic liquidity. 5. Despite recent moves by the Philippine central bank to loosen domestic liquidity, money in circulation remains tighter than before the start of the regional currency crisis in July. 6. Exchange rate stability will encourage foreign investors to bring in capital to improve domestic liquidity. 7. It was also attributed to sufficient domestic liquidity and the favorable investment climate created by the recent release of positive growth, inflation and export data. 8. Miranda said BI would emphasize the use of its SBIs as an open market instrument to control domestic liquidity. 9. Thailand was badly in need of foreign capital to shore up the baht and boost domestic liquidity. 10. The deceleration in economic growth, tightened domestic liquidity, and higher interest rates are among the factors that could pull growth down in the remainder of the year. |