PSEi sustains rally on PLDT gains, US data

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The Philippine Stock Exchange index (PSEi) rose largely on PLDT gains while the rest of the market held back in anticipation of today’s release of the second-quarter gross domestic product (GDP) data.

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The PSEi closed up 0.20 percent or 14.11 points at 7,160.46 after touching an intraday high of 7,176.23, good enough for its sixth yearly high since topping 7,400 last May. The wider All Shares index increased 0.25 percent or 10.38 points to close at 4,231.80.

Philippine Long Distance Telephone Company (PLDT) registered a 0.65-percent increase or P22 to close at P3,412 per share.

Rafael Supangco of Angping and Associates Securities Inc. said in a phone interview that the market climbed on PLDT’s gains, but that the investors mostly stayed on the sidelines for a second consecutive session awaiting the GDP figures due out today, Thursday.

“The PLDT increase was due to the MSCI [rebalancing], and there is also a shift in the company’s business. It’s venturing and investing into more content . . . It becomes more compatible with telcos globally,” Supangco explained.

MSCI refers to the MSCI Philippines Index, which was rebalanced earlier this month, a revision that saw PLDT’s weight in the index increase by 4 percent.

Jason Escartin of F. Yap Securities Inc., on the other hand, said the market went up in imitation of the gains of overseas markets on improving US economic data.

“Local equities continued the upward trajectory, with the bulk of the guidance coming from improving economic data in the US. This view was upheld due to the [value]turnover staying above the P10-billion mark,” Escartin said.

Besides PLDT, gainers among the most actively traded stocks were SM Investments Corp., Bank of the Philippine Islands, Energy Development Corp., Universa Robina Corp. and Petron Corp. Active losers on the day included BDO Unibank Inc., Ayala Land Inc., Alliance Global Group Inc., Metropolitan Bank and Trust Company.

All six subindices also advanced: Financials went up 0.16 percent or 2.67 points to 1,644.37; industrials increased 0.38 percent or 42.42 points to 10,987.17; holding firms gained 0.38 percent or 23.98 points to 6,303.78; services rose 0.19 percent or 4.21 points to 2,248.26; mining and oil inched up 0.07 percent or 12.82 points to 17,437.80; and property registered a 0.17-percent gain or 4.59 points to close at 2,703.81.

2.357 billion shares worth P10.9 billion changed hands, with 90 issues advancing against 79 decliners. 48 shares were unchanged.

Supangco said that the performance of the market will “depend on the GDP results” to be released at 10 a.m. today. Last week a government economist forecast a 7 percent growth rate for the second quarter, while credit ratings giant Moody’s Analytics estimated Q2 growth at 6.2 percent.

“[Market] movements would be broadly index-based, specifically large caps with good trading range maneuverability. Immediate support is 7,140, resistance is at 7,200 to 7,230,” Escartin added.

On Tuesday, the PSEi advanced 0.19 percent or 13.26 points, closing at 7,146.35. The All Shares index inched up 0.09 percent or 3.87 points to reach 4,221.42.

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