The local bourse ended slightly higher on Thursday, with sentiment buoyed by strong global markets but tempered by uncertainty in the wake of Typhoon Glenda and the corruption scandal surrounding the Disbursement Acceleration Program (DAP).
The Philippine Stock Exchange index (PSEi) closed up 0.49 percent or 33.32 points at 6,867.26. The broader All Shares index also finished higher, gaining 11.97 points or 0.29 percent to 4,112.58.
Astro del Castillo, managing director at First Grade Finance Inc., said in a phone interview that the market rode on positive sentiment from the international markets.
“Basically, there were improvements in the global markets and economies. Our market is also playing catch-up with the regional markets,” del Castillo said.
“The fundamentals of global markets, particularly the US market, are also improving, as well as corporate earnings,” he added.
Summit Securities Inc. President Harry Liu said in a separate phone interview that the local bourse “is dampened” by the after-effects of President Benigno Aquino 3rd’s speech earlier this week about the DAP issue, the drop in Aquino’s performance ratings announced prior to the President’s address by the Social Weather Stations, and the damage left behind by Typhoon Glenda.
Rafael Supanco of Angping and Associates Securities Inc. agreed with Liu that the market, because of political tensions and the typhoon effect, will slow down in the next few days.
“When there’s anything like this [Typhoon Glenda], there is always a risk of a slowdown. To add to this is the political risk heightened by the DAP issue. [The PSEi is projected] at a downward bias,” Supangco said in a text message.
Despite the negative political influence, both Liu and del Castillo said the midyear corporate earnings “are positioning” the market, depending on the firms’ data for the first half of the year.
All the sectoral indices ended on a positive note. Mining and oil added 167.64 points or 1.02 percent to 16,655.10, while the services index rose by 0.50 percent or 10.37 points to 2,079.17. Holding firms gained 29.26 points or 0.48 percent to 10,312.44, with financials up by 0.43 percent or 7.11 points to 1,650.89. The property counter climbed a bit by 0.32 percent or 8.44 points to 2,625.53, while industrials inched up by 0.01 percent or 1.54 points to close at 10,312.44.
Seven out of 10 of the most actively traded stocks gained in Thursday’s trading. These included PLDT (up 0.80 percent or P24 to P3,030), Alliance Global Group Inc. (up 0.53 percent or 15 centavos to P28.25), and BDO Unibank, Inc. (up 0.39 percent or 35 centavos to P90.90).
Losers on the day were Security Bank Corp. (down 1.65 percent or P2 to P119.40), Globe Telecom Inc. (down 1.05 percent or P18 to P1,702 per share), and SM Investments Corp. (down 0.45 percent or P3.50 to P782.50).
Advancers outnumbered decliners 88 to 81 while the unchanged stood at 50. Shares traded totaled to 668.73 million, amounting to P7.69 billion.
Liu said that for short and medium term, the local stock market is seen to go through a consolidation phase, while the long-term market is projected to go upwards. “The market is at 6,800 support level, while resistance is at 7,000,” Liu added.
On Tuesday, the PSEi added 3.67 points or 0.05 percent to 6,834.04, while the wider All Shares index slipped 2.02 points drop or 0.05 percent to 4,100.61. Wednesday trading was suspended due to the onslaught of Typhoon Glenda.