PH shares bounce back after Wall Street recovery

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Philippine shares ended a two-day downturn on Thursday, taking a positive cue from improving sentiment in US markets.

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The Philippine Stock Exchange index (PSEi) recovered from two straight days of moderate losses, gaining 33.42 points, or 0.48 percent to close at 6,937.21, while the wider all shares finished at 4,156.60 after adding 17.88 points, or 0.43 percent.

“Recovery on Wall Street improved local sentiment and bargain-hunting boosted shares,” BDO Unibank Inc. chief market strategist Jonathan Ravelas said in a text message.

Except for financials, which shed 0.12 points, or 0.007 percent to close at 1,665.81, all of the sector indices were in the green at Thursday’s close. Property was the biggest percentage gainer, picking up 29.74 points, or 1.13 percent to 2,669.03, followed by mining and oil, which was up by 129.78 points, or 0.79 percent to 16,572.17. Holding firms also improved, gaining 31.38 points, or 0.50 percent to close at 6,260.37, as well as services, which added 7.36 points, or 0.35 percent to 2,081.60. Industrials ended flat with a 1.00-point gain, or 0.01 percent to 10,469.31.

Valued at P6.9 billion, 1.02 billion shares changed hands in Thursday’s session. Advancers comfortably outnumbered decliners, 98 to 74, although 53 issues were unchanged.

BDO Unibank Inc. was among the day’s most active movers, up 0.11 percent to P92, while Alliance Global Group, Inc., was ahead 0.34 percent to P29.80. Other active issues included Ayala Land Inc., up 2.12 percent to P31.35; Jollibee Foods Corp., unchanged at P180; and International Container Terminal Services Inc., down 0.54 percent to P111.40.

In the next few days, Ravelas said market participants should “continue to see the market retrying the recent highs on anticipation of higher earnings for the second quarter.”

In another development, capital raising activities through the stock market have more than doubled in the first half of 2014.

In a statement, the Philippine Stock Exchange (PSE) reported an increase in capital-raising activities among listed companies of 147.2 percent from January to June 2014 compared to the same period last year.

Capital raised by companies listed on the exchange through initial and follow-on public offerings, stock rights offerings and private placements, rose to P76.12 billion in the first six months of the year from P30.80 billion in the same period in 2013.

As a result, the PSEi gained 16.2 percent during the first six months of the year and ended the period at 6,844.31 points.

“We are again poised for another banner year based on various growth metrics. We started the year slow as we saw some fund rotation out of the country at the beginning of the year but we have since picked up the pace as shown in the rise in net foreign inflows all the way to the end of June,” PSE president and chief executive officer Hans Sicat said.

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