The Philippine Stock Exchange index (PSEi) rebounded and breached the 7,700 territory yesterday, hitting an intraday record of 7,738.12 before closing at 7,716.06, up 1.35 percent or 102.91 points. The wider All Shares index likewise went up 1 percent or 44.30 points to 4,481.28.
Lexter Azurin, research head at Unicapital Securities Inc., said: “Basically, we followed the surge in US markets last night after the Dow rallied 305 points last night. Expectations for low inflation rate for January, scheduled to be announced today, also eased interest rates concerns.”
Astro del Castillo of First Grade Finance Inc. said that the PSEi went beyond 7,700 territory on the “accumulated good news” including the positive US market, expected manageable inflation for the rest of the year, the encouraging sentiment of the upcoming full year corporate earnings.
Services and mining and oil index led the gains of the the entire subindices, increasing by 1.97 percent and 1.66 percent, respectively. Services index had broad-based ascent, while the mining and oil counter surged on the first time increase in oil prices on Monday—to about $50 per barrel from as low as $45 per barrel.
LT Group Inc. was the biggest winner among the top ten advancers on Monday, surging 7.71 percent. Azurin said this was due to the implemented increase in selling prices of the firm’s products, particularly in its tobacco business.
“The increase in their prices will be beneficial for them. It will translate for higher returns,” he said.
Other active gainers were Philippine Long Distance Telephone Company, Ayala Land Inc., BDO Unibank Inc., Petron Corp., Semirara Mining and Power Corp., and DMCI Holdings Inc., among others.
Value turnover reached P7.18 billion from the 1.98 billion shares traded within the Wednesday trading session. Advances were more than declines, 109 to 63, while the unchanged was at 48.
“We will continue to monitor the US markets for the following days. And then also, the market will be anticipating the fourth quarter [and full year]earnings results of the companies which is expected to come in the next few weeks,” Azurin said.
“While the PSEi trekked higher mostly in-step with Wall Street and other Asian markets, the Philippine story remains attractive to investors. The positive expectations continue to support the market’s uptrend,” PSE President and Chief Executive Officer Hans Sicat said.
Nisha Alicer of DA Market Securities Inc. said: This is the eight fresh high for the market fuelled by the rally in US markets, as oil prices continued to rally . . . US crude is seen to recover to $60 per barrel, but for now it is trading at $53.05 per barrel.”
“On the local front, the market rally has been sustained through rotational activity among stocks. Today’s gains were led by previous laggards LTG, PCOR and TEL . . .
We continue to be positive as we head into first quarter earnings season, also ahead of the BSP [Bangko Sentral ng Pilipinas] policy meet on February 12,” she added.
Lawrence Lee, vice president of Citisecurities Inc., said liquidity drove the market, with most investors monitoring the oil prices “rallying over the past five days.”
“Low oil prices has really affected the last quarters of global earnings. If oil prices rally and stabilize around the $55-60 per barrel level, it could be good for global markets,” Lee said.
The US markets were in the green on Tuesday night—Dow Jones up 305.36 points, S&P 500 gained 29.18 points, and Nasdaq advanced 51.05 points.
On Tuesday, the bellwether PSEi was down by 0.23 percent or 17.56 points to 7,613.15, while the All Shares dipped by 0.09 percent or 4.06 points to 4,436.98.