Share prices rose for the fourth day running, with investors paying more attention to
companies reporting double-digit growth in first-quarter earnings.
The bellwether Philippine Stock Exchange index (PSEi) inched up 0.30 percent or 23.09 points to finish at 7,831.44, while the wider All Shares index added 0.28 percent or 12.69 points to 4,522.50.
Justino Calaycay Jr., equity analyst at Accord Capital Equities Corp., said the PSEi reflected market resilience as trading remained firm despite a lack of volume.
“Philippine share prices continued to inch higher after [the PSEi]crept back into the 7,800 territory yesterday. From Monday to Wednesday, the main share index climbed 45.14 points, mainly as first-quarter earnings outweighed external headwinds. Breadth has equally improved, with the last two sessions showing a balance has been struck between the two contending forces—bears and bulls,” he said.
The market swung between positive and negative territories before settling slightly higher.
“The evident tug-of-war between the bulls and the bears remained in force as the index fluctuated between gains and losses. At the close of the day, the market still managed to keep its winning streak intact into a fourth day, albeit by a similar thin margin,” he added.
Calaycay cited the stream of generally positive first-quarter earnings results that buoyed the market, such as Cosco Capital Inc., GT Capital Holdings Inc., and Filinvest Land Inc.
In the next few days, investors will continue to look “for something to hinge trades on” after seeing the double-digit increases in net income.
That should feed confidence in “the future prospects of equities—which, statistically are driven mainly by earnings,” Calaycay said, referring to the correlation between earnings growth and the level and direction of share prices.
“It is evident from the first four sessions of this week that investors are grasping for something to hinge trades on. This will still be the main theme going into the final session of the week—the bears making their presence felt but the bulls managing to eke out a win,” he added.
All sectoral indices gained in Thursday’s sessions, led by financials and industrials.
Top gainers were a carryover from the previous day’s advances, which included GT Capital (+1.007 percent), Globe Telecom Inc. (+7.04 percent), BDO Unibank Inc. (+0.80 percent), Energy Development Corp. (+1.03 percent) and Ayala Corp. (+1.81 percent), among others.
Bank of the Philippine Islands slipped 0.10 percent while Jollibee Foods Corp. eased 0.09 percent.
Only 552.65 million shares were traded, valued at P7.29 billion. Despite the positive close in the indices, decliners outnumbered advancers 110 to 69, while 49 issues stood unchanged.
On Wednesday, the main PSEi firmed 0.18 percent or 13.80 points to 7,808.35, while the wider All Shares index added 0.35 percent or 15.71 points to 4,509.81.