Philippine stocks gained for the second day in a row on carryover momentum from Thursday’s positive reaction to a raft of optimistic economic data.
The benchmark Philippine Stock Exchange Index (PSEi), rose 0.72 percent or 50.56 points to end the day at 7,098.64, while the wider All Shares inched up 0.64 percent or 25.89 points to close at 4,095.76.
Astro del Castillo, president and managing director of First Grade Finance Inc. in a phone interview, said that the local bourse’s positive performance was a carryover effect from a string of good news on Thursday, after the PSEi posted a 1.2 percent retreat Wednesday on the back of disappointing export data.
“The ECB’s [European Central Bank] move to further cut its interest rates, China’s higher February consumer inflation rate at 2.3 percent, and our very own factory output (which expanded in volume by 34 percent in January) are still the same factors that pushed the market up today [Friday],” del Castillo said.
Del Castillo noted that since the local bourse reached the 7,000 level on Thursday, investor appetite has grown further.
“There are now fewer risks on the horizon, and that encouraged further buying on the part of investors. We are at least off to a good start,” he said.
In a separate interview, Victor Felix, analyst at AB Capital Securities Inc., agreed with del Castillo, but added that following the Supreme Court’s decision on Tuesday allowing Grace Poe to run in the May presidential elections, more equities investors are buying in the market.
“The decision gave the investors clarity as to where the country’s economy is going. Mar Roxas and Grace Poe are perceived by investors as the presidential candidates who would ensure that all the economic reforms complemented by the incumbent Administration would be continued. Both local and foreign investors are happy,” Felix said.
Total value turnover was high at P9.182 billion. Winners outnumbered losers, 113 to 61, while 42 issues were unchanged.
All the sub-indices posted gains, led by the mining and oil sector jumping 2.52 percent, followed by financials firms closing 2.03 percent higher.