The Philippine Stock Exchange index (PSEi) surged past 7,200 points on Friday ahead of third quarter earnings results expected next week.
The benchmark index went up 1.67 percent or 118.60 points to 7,236.38, while the All Shares index also increased by 1.38 percent or 56.55 points to 4,160.64.
Aristotle Reyes Jr., equities trader at UPCC Securities Corp., said investors were encouraged to buy as global markets picked up. He also noted bullish sentiment with regard to third quarter corporate results.
“The regional markets went up today, and [the PSEi]got a boost from selected issues. Some are starting to buy [stocks of]those companies which were oversold in the past few days, ahead of the corporate earnings,” Reyes said.
Listed firms are expected to begin reporting third quarter financial results next week up to the whole of November.
“For the days ahead, companies will start releasing incomes and I think the market will continue to pick up. Other than the positive view on corporate earnings, a lot are
speculating that the third quarter GDP [growth results]will also be very good,” Reyes said.
Overseas markets gained as the European Central Bank hinted of a fresh stimulus that may jack up share prices towards the end of the year.
F. Yap Securities Inc. Investment analyst Jason Escartin said: “Local equities rose with optimism from Wall Street, with the indication of an extended stimulus program from the ECB. Adding to the optimism is the expectation that the US Fed would maintain its policy at its meeting next week.”
All sub-sectors were in the green on Friday, led by services and mining and oil that went up by 2.51 percent and 2.03 percent, respectively.
Advancers outnumbered decliners, 119 to 56, while 40 were unchanged. The total volume traded was 1.271 billion shares valued at P8.11 billion.
On Thursday, the bellwether PSEi climbed by 0.35 percent or 24.88 points to 7,117.78 while the wider All Shares index rose 20.14 points or 0.49% to 4,104.09.