Philippine shares shrugged off the pessimism of other major markets and returned to the 6,800-point level on lingering investor confidence in the country’s equity market.
“Share prices picked up where they left off the previous session, posting gains of over 30 points minutes off the opening bell and holding steady onwards,” Accord Capital Equities Corp. analyst Justino Calaycay said.
Calaycay pointed out that UBS’ reiteration of its growth projections for the Philippines may be helping to keep optimism alive. In a teleconference, UBS said on Tuesday that the country’s economic growth should still average 6.5 percent this year.
“The overnight leads were not encouraging, with US equities retreating off record levels. Europe ended mixed while Asian markets were mostly lower in early trading,” he added. The US Dow Jones Industrial Average fell more than 100 points overnight.
Wednesday’s trade saw the Philippine Stock Exchange index (PSEi) settle at 6,834.68, a gain of 41.61 points, or 0.61 percent, while the wider all shares index added 22.58 points, or 0.55 percent to close at 4,096.52.
This is the index’ fourth push past the 6800 line after dropping off the 6880-level toward the end of last month, keeping the near-term consolidation trend while validating the positive bias, according to Accord’s Calaycay.
“The critical upside line that the market should break and hold above is at 6810,” Calaycay said.
Except for industrials, which erased 12.99 points or 0.12 percent to 10,386.36, the rest of the local sectors ended higher alongside the main index.
Property sector had the largest increase, rising by 34.14 points, or 1.30 percent to 2,655.21, followed by financials, which gained 19.25 points, or 1.20 percent to 1,629.24.
The services sector added 19.62 points, or 0.98 percent to finish at 2,014.47, while holding firms had a modest 18.00 point increase, or 0.29 percent to 6,231.89. Mining and oil also inched up by 39.44 points, or 0.24 percent to close at 16,229.38.
Trading was a bit more active than on Tuesday, with 1.08 billion shares worth P9.8 billion shares changing hands. Advancers again beat decliners, 111 to 79, while only 37 issues were unchanged.
Among the more active issues were blue chip firms Philippine Long Distance Telephone Co., up 1.12 percent to P2,900; SM Investments Corp., up 1.12 percent to P826.50; Metropolitan Bank and Trust Co. rose 2.88 percent to P89.45; and Alliance Global Group Inc., was up 0.87 percent to P29.15.
The session’s biggest gainer was Makati Finance Corp., which saw its shares surging 50 percent to P9.00 despite the absence of an obvious cause.
In a letter to the stock exchange, Makati Finance explained that it has no knowledge of the existence or absence of any undisclosed information or any other significant factors that could have triggered the unusual price increase.
“We hereby undertake that we will make the appropriate disclosure to the Exchange should we come across any relevant information regarding the matter,” the company added.
Both the composite index and the all shares market also gained on Tuesday, with the PSEi closing at 6,793.07 after adding 31.08 points, or 0.46 percent, while the wider all shares went up by 16.51 points, or 0.41 percent to 4,073.94.