Shares rose 1 percent on Wednesday in an extended technical rebound, with sentiment also buoyed by United States President Obama’s visit to the country, during which he reiterated that the US “commitment to defend the Philippines is ironclad.”
The Philippine Stock Exchange index (PSEi) ended above the 6,700 psychological level, gaining 71.46 points or 1.08 percent to 6,707.91, while the broader all shares climbed by 41.08 points or 1.02 percent to 4,051.12.
“Local share prices extended their rebound off a four-day slide to a second day, testing and briefly breaching the 6,700 mark and pulling back just a few points to keep the line within striking distance. By the close of the session, the index finally pulled above the psychological line,” said Jun Calaycay, analyst at Accord Capital Equities Corp.
Eduardo Francisco, analyst at BDO Capital and Investment Corp., said the market did better on Wednesday as it continued to recover from its previous correction.
“[The market did better today] but in general, it was just a recovery from the previous [fall],” Francisco said.
Partly, he said the market was experiencing slight positive shockwaves from President Obama’s visit to Manila earlier this week.
“Long term, the only concern is peace and order, or general peace in the region, and the fact that Obama was [here]to show support is a good thing,” Francisco said.
“So whatever happens between China and the Philippines, at least we have support or, like, a big brother. And that appeases the concerns so investors don’t have to sell, it shouldn’t stop them from investing,” he added.
All sectoral indices were up, with property, financials, mining and oil, and services posting gains of more than 1 percent.
The property sector gained 42.97 points or 1.67 percent to 2,623.73, while financials rose 20.76 points or 1.32 percent to 1,589.89. Mining and oil climbed 189.93 points or 1.23 percent to 15,680.71.
Services advanced 24.02 points or 1.20 percent to 2,034.02. Holding firms added 54.35 points or 0.89 percent to 6,132.14, while industrials gained 78.86 points or 0.79 percent to 10,072.66.
Trading volume expanded to 2.9 billion shares valued at P10.3 billion. Advancers outnumbered decliners, 122 to 51.
Some of the most actively traded stocks on Wednesday were BDO Unibank, Inc., down 0.06 percent at P88.25; Philippine Long Distance Telephone Co., up 2.20 percent at P2,880.00; Universal Robina Corp., up 0.69 percent at P146.00; and Alliance Global Group, Inc., up 1.63 percent at 31.15 points.
The local market will be closed Thursday, May 1, for the Labor Day holiday.
AB Capital Securities Inc. equity analyst Abbygayle Estrella said the market will be waiting for the outcome of the Federal Open Market Committee’s (FOMC) two-day policy meeting, but as trade resumes on Friday, share prices may “most likely be flat ahead of the weekend.”
Calaycay has a different take, though. He believes shares could head north with enough good news on the earnings front.
“Corporate earnings over the first quarter which are due out in the days and weeks ahead should provide sufficient impetus to boost the measure further north,” Calaycay said.