The local bourse bounced back to post a moderate gain Thursday after two days of losses, drawing encouragement from generally positive third-quarter corporate earnings reports and the extension of Japan’s large-scale asset buying program.
The Philippine Stock Exchage index (PSEi) increased 0.39 percent or 27.82 points to close at 7,236.63, while the All Shares advanced 0.41 percent or 17.29 points to 4,261.79.
“The market bounced back from losses yesterday [Wednesday] due to two events – generally positive US markets last night, and then second, we’re still riding on Japan’s version of quantitative easing as they allotted more the $1 trillion for their asset-buying program. We’re bullish in equities in general,” Alexander Adrian Tiu, analyst at AB Capital Securities Inc., said in a phone interview.
“Locally, earnings are still the driving force,” he added.
Tiu said gaming-related stocks in particular have been on a roll in the past few days, except for Belle Corp., which recently transferred all its gaming assets to Premium Leisure Corp. (PLC), (formerly Sinophil Corp.). Belle Corp. shares have suffered extended losses as a result, while PLC shares are gaining.
“Also, there was a delay in the opening of [Melco Crown’s] City of Dreams, which was scheduled to open in October or November. But Bloomberry Resorts Corp’s shares are encouraging, upgrading the outlook in the overall gaming sector,” Tiu said.
Philippine Long Distance Telephone Company (PLDT) was again the most actively traded share, and extended its losses into a third day, declining 2.34 percent to close at P2,920 and dragging the services subindex into the red by 0.73 percent or 15.76 points at 2,129.80.
“The services counter was the only decliner among the sectoral indices mainly due to the decrease in PLDT shares. PLDT weighs 45 percent in the services sector, and 11 percent in the benchmark stock index,” Tiu said.
Asked if the release of the stable inflation numbers for October affected the market, Tiu said that it helped the market rebound on Thursday but with a minimal role during the trading session.
“For the next few days, the market is still going to be positive — resistance is at 7,340. If the bullish momentum continues, we can break 7,300 possibly next week,” Tiu said.
“The market was just dragged because of the decline in PLDT shares, but if we see the telco giant’s shares going up again, we see the PSEi following,” he added.
Among the rest of the sectoral indices, financials advanced 0.77 percent or 13.11 points to 1,710.82; industrials inched up 0.10 percent or 11.89 points to 11,622.78; holding firms were up 0.41 percent or 25.88 points at 6,367.81; mining and oil rose by 0.15 percent or 23.74 points to 15,443.84; and property surged 1.80 percent or 50.51 points to 2,853.36.
Aside from PLDT, International Container Terminal Services Inc’s. shares declined despite being actively traded. Active gainers, on the other hand, included BDO Unibank, Megaworld Corp., Ayala Land Inc., GT Capital Holdings Inc. and Premium Leisure Corp.
Total shares traded tallied 4.36 billion, with P9.75 billion in value changing hands.
Decliners outnumbered advancers, 90 to 88, while 46 issues were unchanged.
On Wednesday, the PSEi was down 0.18 percent or 13.20 points at 7,208.81, while the All Shares index inched up 0.005 percent or 0.20 points to 4,244.50.