LOCAL stocks finished the week higher above the 7,200-point mark as investors cheered better-than-expected economic data from the United States and positive earnings results from local firms.
The Philippine Stock Exchange index (PSEi) gained 44.74 points or 0.62 percent to 7,215.73 while the All Shares index added 25.05 points or 0.59 percent to 4,250.51. Analysts said that together with the global market trend, upbeat third-quarter earnings will be a main catalyst for the PSEi heading toward the year-end.
Wall Street’s rally overnight following the favorable US third-quarter gross domestic product (GDP) result added to the positive sentiment. The Dow Jones led the bandwagon with a 211.11-point upsurge, while the S&P 500 climbed 12.35 points and Nasdaq added 16.91 points.
In the week ahead, the PSEi is expected to move toward 7,300 to 7,400 points as bulk of the earnings results for the third quarter are released.
Jason Escartin of F. Yap Securities Inc. said investors were encouraged to buy following gains in global markets and the generally positive earnings reported by locally listed firms.
“The market continued its advance and took its lead from Wall Street on the good Q3 GDP data,” he said, citing the stable 3.5 percent GDP growth reported by the United States for the third quarter.
“Moody’s affirmative stance on the local central bank’s cap on the sector’s real estate exposure also aided the positive sentiment,” he added.
Justino Calaycay Jr. of Accord Capital Equities Corp., for his part, said that the local equities market will validate its movement “as bulk of the earnings reports begin to pour in.”
“This will keep investors focused on domestic issues and push overseas factors towards the sidelines. We are likely to also see some easing of the momentum on third-line counters in the next couple of weeks, until all third-quarter numbers are released,” Calaycay said.
“The PSEi is likely to break past the 7,200-line and test levels between 7,300 and 7,400, possibly trying for a new high,” he added.
All sectors posted modest gains. Financials were up 5.48 points or 0.33 percent at 1,661.40 and industrials rose 105.62 points or 0.92 percent to 11,573.10 while holding firms jumped 36.77 points or 0.59 percent to 6,312.19.
Services rose 19.33 points or 0.89 percent to 2,196.55, mining and oil climbed 77.69 points or 0.50 percent to 15,701.88, and property was up 16.82 points or 16.82 percent at 2,807.30.
Only SM Investments Corp. slipped among the actively traded stocks on Friday.
The top gainers were PLDT, BDO Unibank Inc., Energy Development Corp., Megaworld Corp., Alliance Global Group Inc., Ayala Land Inc., Universal Robina Corp., Bloomberry Resorts Corp. and Jollibee Foods Corp.
Volume traded amounted to 14.27 billion shares, valued at P9.7 billion. Advancers outnumbered decliners 100 to 72, while 47 shares were unchanged shares.
On Thursday, upbeat earnings results lifted the main index, which climbed 77.68 points or 1.1 percent to 7,170.99, while the wider All Shares rose 35.98 points or 0.86 percent to 4,225.46.