INVESTORS bought up Philippines stocks Monday on the assumption the economy is “one of the least vulnerable economies” after the inauguration of US President Donald Trump over the weekend.
The market also took position ahead of the fourth quarter gross domestic product (GDP) report to be released on Thursday.
The bellwether PSEi rose 1.96 percent or 141.69 points to 7,374.35, while the All Shares gained 1.39 percent or 60.51 points to 4,426.14.
“After a relatively peaceful inauguration last week, investors resumed bargain hunting on the assumption the Philippines would be one of least vulnerable economies relative to the all the global geopolitical uncertainties,” Luis Limlingan, managing director of Regina Capital Development Corp. (RCDC), said.
Investors are also “positioning” ahead of the Philippine GDP figure covering the fourth quarter 2016 to be released on Thursday.
“Philippine GDP will be announced with median forecasts so far at around 6.6 percent. RCDC’s estimate for GDP growth is at 6.7 percent,” Limlingan said.
Joylin Telagen, equity analyst at IB Gimenez Securities Inc., said investors turned “optimists” ahead of the Philippine GDP numbers.
“I think PSEi follows Wall Street gains after the Donald Trump inauguration, and investors turned optimist ahead of Philippine GDP. But for the week, I think investors are still watchful of Trump policies and important US data. Locally however, the Philippines GDP will be something to look forward to at the end of the week,” Telagen said.
“With the PSEi nearing resistance level, I think a break through to 7,400 would retest 7,500. Downside risk is seen at 7,200,” she added.
Among the sectors, Mining and Oil dropped 0.27 percent, while Holding Firms led the gainers with 2.26 percent climb.
The actively traded gainers were Metrobank, BDO Unibank Inc., Ayala Land Inc., Ayala Corp., SM Investments Corp., Universal Robina Corp. and Bank of the Philippine Islands.
More than 1.217 billion shares were traded, valued at P5.6 billion. Gainers outpaced the losers, 108 to 79, while 45 issues were unchanged.
On Friday, the PSEi lost 13.42 points or 0.19 percent at 7,232.66. The All Shares was up 3.42 points or 0.08 percent at 4,365.63.