THE bellwether PSEi climbed back to the 7,200 level on Thursday, fueled by bargain hunting as the market reacted positively to the prospects of more infrastructure investment.
The PSEi rose1.25 percent or 89.72 points to 7,246.08, while the All Shares gained 0.94 percent or 40.63 points to 4,362.21.
Harry Liu, president of Summit Securities Inc., said market players were continuing to come in scouring for bargains.
“This is a reactionary trend. There is Trump coming in as president, people are anticipating his inauguration and are hopeful of his policies that will boost economic conditions,” noted Liu.
“The local economic condition is also very good, with our president putting in mind the issues and is addressing them, prompting the companies to look at some growth areas where they can invest in,” he said.
“The fundamentals are keeping us afloat— president addressing issues, the airport and infrastructure projects, making Mindanao investment friendly and the peace and order in the country,” he added.
On the other hand, Regina Capital Development Corp. Managing Director Luis Limlingan, said bargain hunting prevailed despite the mixed performance of US stocks and the hawkish remarks of US Federal Reserve chair Janet Yellen.
Positive corporate earnings and economic data solidified the Fed stance to further increase US interest rates this year, Limlingan noted.
The US markets were more focused on the potential Fed rate hike, but investors in the Philippine market are banking on the economic fundamentals of both the US and the Philippines, he added.
Moving forward, Liu said Philippine stocks may encounter selling pressure after the Chinese New Year in February—especially after the market is able to absorb and discount the economic policies the Trump administration has to offer.
If the PSEi stood above the 6,900 to 7,000 levels, he said the market may go for the 7,500 mark.
All sectoral indices traded in positive territory on Thursday, led by the Property sector’s 1.86 percent gain.
Out of the most active shares, GT Capital Holdings Inc. and BDO Unibank Inc. stood were flat. Among the top gainers were Ayala Land Inc., Semirara Mining and Power Corp., SM Prime Holdings Inc., Globe Telecom Inc., Megaworld Corp. and PLDT Inc.
More than 2.13 billion shares valued at P5.86 billion were traded. Advancers outnumbered decliners, 112 to 70, while 49 issues were unchanged.
On Wednesday, the benchmark PSEi advanced by 0.46 percent or 33.03 points to 7,156.36, while the All Shares increased by 0.39 percent or 16.93 points to 4,321.58.