Amid regained optimism toward the local market, Philippine stock index went back to 7,200-level, following a slight rebound on Wednesday after three-day skid.
Astro del Castillo, First Grade Finance managing director, said that the market went up on anticipation for a better first-quarter GDP [gross domestic product]numbers today.
“I think we were infected by the optimism in New York and then Finance Secretary Cesar Purisima issued a statement about the market if ever they support it toward the end. It contributed to the excitement in the market,” he added.
Jonathan Ravelas, chief market strategist of BDO Unibank Inc., specified that overseas, Wall Street registered a 100-point rally, which also drove the local market higher.
“Bargain-hunting activities took place, following the recent test of the 7,100 level where buyers emerged,” Ravelas added.
Jun Calaycay, Accord Capital Equities Corp. analyst, on the other hand, said on the previous day that heading into the sessions of the week and for the month, attention shifts once more to the domestic front with the release of GDP results.
“The market will begin to discount their expectations and coupled with positioning for a degree of month-end window dressing may push the index and sustain levels above 7,100,” Calaycay further said.
“Value turnover may [also]start to pick up after almost two weeks of staying below the averages,” he added.
The Philippine Stock Exchange index sharply rebounded on Wednesday, gaining 115.35 points, or 1.62 percent to close at 7,228.57.
The broader all-shares index was also buoyant, registering an increase of 54.20 points, or 1.24 percent to close at 4,432.17.
All sectoral indices also made it to the green side, with mining and oil surging by 4.86 percent, or 828.95 to 17,897.64, followed by the industrial counter, which rose by 2.10 percent, or 223.91 points to 10,892.14.
Financials gained 27.99 points, or 1.54 percent to end at 1,839.67, while holding firms accumulated 93.67 points, or 1.47 percent to 6,477.27. Property improved by 1.17 percent, or 34.57 points to 2,987.76, next to services counter, which went up 1.26 percent, or 26.42 points to 2,120.76.
Advancers also beat decliners, 114 to 49, while 49 were unchanged.
Total value turnover was also at P9.6 billion.
“There is much room for upside with resistance at 7,170 and 7,200,” Calaycay added.
Madelaine B. Miraflor