Philippine Shares extended their gains on Monday from last week’s advance as a new stream of higher-than-expected first-quarter earnings results buoyed sentiment further, sustaining hopes that corporate performance will continue to be strong in the second quarter.
The Philippine Stock Exchange index (PSEi) rose 28.48 points or 0.36 percent to close at 7,910.43, while the All Shares index added 13.88 points or 0.31 percent to 4,560.01.
Harry Liu, Summit Securities Inc. president, said a string of positive corporate earnings released over the past few days encouraged buying, with investors now anticipating even better second-quarter numbers.
“The market is [still]going through a medium-term consolidation. There was nothing on the global [front]that could have excited the market… Everyone is waiting and excited about the second-quarter corporate results given the favorable first-quarter [earnings]releases. The medium term is holding at the 7,850 to 8,000 range,” Liu said.
“If this continues and should the market breach the 8,000 resistance, then we can go back to the all-time high levels at 8,300 points.”
“We’re looking at better third- and fourth-quarter results. So far, I think it is looking good.
Aside from the earnings, people are also encouraged by the continuous flow of OFW remittances, public infrastructure spending and election spending, which should be good for the economy,” Liu said.
“But for the medium term or the month of May at least, I think the market may go 70 percent upward and only 30 percent negative,” he added.
Mining and oil, as well as the industrial sector, declined — down 1.36 percent and 0.23 percent, respectively — while the other indices advanced, led by property with a 0.99 percent gain.
Top gainers among the actively traded stocks were GT Capital Holdings Inc. (+1.49 percent), Alliance Global Group Inc. (+2.05 percent), BDO Unibank Inc. (+1.57 percent), Puregold Price Club Inc. (+2.63 percent) and Aboitiz Power Corp. (+1.77 percent).
Active decliners were Universal Robina Corp., down 2.66 percent, Globe Telecom Inc., down 3.92 percent and Bank of the Philippine Islands, down 0.05 percent.
Volume turnover reached 603.67 billion, valued at P4.57 billion. Decliners outnumbered advances 94 to 89, while 44 issues closed unchanged.
On Friday, the bellwether PSEi rose 0.64 percent or 50.51 points to close at 7,881.95, while the All Shares index inched up 0.52 percent or 23.63 points to 4,546.13.