Philippine shares bounced back on Thursday from a two-day correction, after remarks from the US central bank chief lifted sentiment on Wall Street and other global markets.
US Federal Reserve Chair Janet Yellen told the Joint Economic Committee of Congress that central bank support for the US economy would continue, Reuters reported.
Astro del Castillo, First Grade Finance Inc. managing director, said in a phone interview that the market went up after Wall Street and other global markets reacted positively to Yellen’s remarks.
“Of course, the market is up also because of positive corporate earnings,” he added.
On Thursday, the Philippine Stock Exchange index (PSEi) recovered from a two-day slump, rising 16.70 points or 0.25 percent to 6,765.21, while the wider all shares gained 15.06 points or 0.37 percent to 4,080.29.
Except for mining and oil, which was down 2.21 points or 0.01 percent to 16,620.13, the rest of the sectors posted minor gains.
Property went up 21.63 points or 0.81 percent to 2,679.20, while industrials advanced 38.57 points or 0.38 percent to 10,164.93. Holding firms gained 11.85 points or 0.19 percent to 6,131.42 and financials added 3.10 points or 0.19 percent to 1,606.96. Services also went up 3.68 points or 0.18 percent to 2,058.67.
The volume of shares traded increased to 3.9 billion valued at P7.6 billion. Advancers outpaced decliners 99 to 80, while 41 issues were unchanged.
Some of the most actively traded stocks were SM Prime Holdings Inc., up 3.32 percent at P16.80; Philippine Long Distance Telephone Co., up 0.07 percent at P2,894; Ayala Land Inc., down 0.16 percent at P30.95; and Philippine National Bank, up 3.37 percent at P92.
On Thursday, investors snapped up SM Prime Holdings (SMPH) shares after the enlarged real estate firm announced it would list an additional 15.7 billion common shares on the local stock exchange. The listing, which has been approved by the stock exchange’s board of directors, will cover the merger between SMPH and SM Land Inc., share for share swaps, and property for share swaps.
According to del Castillo, the announcement boosted investor confidence in SM Prime.
On Wednesday, Philippine shares fell with not much positive news both locally and globally to spur buying in local equities. The main index was down for a second day, lower by 17.42 points or 0.26 percent to 6,748.51, while the wider all shares retreated 11.07 points or 0.27 percent to 4,065.23.