PH shares jump on BOJ stimulus, robust earnings

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PHILIPPINE shares surged by more than one percent on Monday and crossed into the 7,300-points territory on optimism from the Bank of Japan’s expanded asset buying program and the robust third quarter earnings results of local firms.

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The bellwether Philippine Stock Exchange index (PSEi) surged 97.12 points or 1.35 percent to 7,312.85, while the All Shares advanced 35.83 points or 0.84 percent to 4,286.34.

Japan surprised global markets on Friday with its decision to expand its asset purchase program by as much as 33 percent, with the buying program to include not just government bonds but also equities and real estate funds.

The BOJ and Japan’s Government Pension Fund has allotted over $1 trillion of fresh funds for the asset purchase.

Reports said the move would triple the pace of the BOJ’s buying of stocks and property funds, extend the average maturity of bonds, and raise the ceiling of government bond purchases by 30 trillion yen ($264.7 billion) to 80 trillion yen ($705 billion).

Lexter Azurin, research head at Unicapital Securities Inc., said the local market advanced along with the regional markets and Wall Street on the stimulus from Japan’s multitrillion yen asset-buying program and local companies’ positive third quarter earnings releases.

“Japan central bank’s over $1 trillion in asset buying program has fueled equities markets globally, as the Japan economy is showing signs of improvement coming from the stimulus,” Azurin said in a phone interview.

Monday’s surge “is also driven by the local third quarter earnings. In the next few weeks, we see this being a market catalyst,” he added.

Azurin said the PSEi is “poised to test 7,400 points in the coming days” but when asked if this was achievable within the week, the analyst said the scenario is “possible.”

All sectors were up driven by services, with Philippine Long Distance Telephone Co. (PLDT) shares leading the gains.

Services surged 2.02 percent or 44.27 points to 2,240.82, financials gained 0.99 percent or 16.48 points to 1,677.88 and industrials jumped 1.19 percent or 137.92 points to 11,711.02.

Holding firms climbed 1.07 percent or 67.27 points to 6,379.46, mining and oil inched up 0.16 percent or 24.84 points to 15,726.72 and property advanced 0.69 percent or 19.24 points to 2,826.54.

Among the top traded stocks, BDO Unibank Inc. ended flat while Megaworld declined.

Besides PLDT, the other top gainers were GT Capital Holdings Inc., SM Investments Corp., Bloomberry Resorts Corp., Ayala Land Inc., Alliance Global Group Inc., Metropolitan Bank and Trust Co., and Island Information and Technology Inc.

Total volume traded was 8.57 billion shares valued at P7.66 billion. Advancers outpaced decliners 98 to 83, while 47 shares were unchanged.

On Friday, the main index gained 44.74 points or 0.62 percent to close at 7,215.73 while the wider All Shares index likewise advanced 25.05 points or 0.59 percent to 4,250.51.

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