Wall St. gains buoy market sentiment
The bellwether PSEi climbed back to the 7,700 territory, as gains overnight on Wall Street encouraged investors to hunt for bargains.
The PSEi gained 127.90 points or 1.69 percent to 7,714.86, while the All Shares index added 55.98 points or 1.24 percent to 4,573.39.
Justino Calaycay Jr., head of research and marketing at A&A Securities Inc., said the market cheered the prospect of higher oil prices which indicated better revenues for oil producing economies.
“For a second day in a row, the market was blanketed by a cheery mood on the prospect of higher oil prices in light of a preliminary agreement by OPEC to cap production at a summit in Algiers overnight,” Calaycay said.
“And we continue to track US and regional indexes, and today was a much better day than yesterday,” he added.
For his part, BDO chief market strategist Jonathan Ravelas said the market was given a lift by bargain hunting in light of oversold conditions in the past few days.
“This is only bargain hunting following a series of declines . . . . Also, pulled by Wall Street’s recovery as it lifts investor sentiment,” Ravelas said.
Sectoral indices were in the green, led by the Property sector’s 3.29 percent gain.
Cemex Holdings Philippines Inc. and Security Bank Corp. were the only decliners among the top 10 actively traded issues. The gainers were led by SM Prime Holdings Inc., Ayala Land Inc., and Megaworld Corp.
Over 1.47 billion shares, valued at P7.54 billion, were traded. Gainers outnumbered losers, 120 to 70, while 48 issues were steady.
On Wednesday, the PSEi increased by 29.62 points or 0.39 percent to 7,586.96, while the All Shares rose by 21.48 points or 0.48 percent to 4,517.41.