Philippine shares advanced in a second-day rebound to revisit the 7,900-point territory, powered by the confluence of Wall Street’s overnight gains, some positive first-quarter earnings results and slower April inflation.
The Philippine Stock Exchange index (PSEi) rose 102.77 points or 1.31 percent to finish at 7,919.21. The broader All Shares index gained 54.84 points or 1.22 percent to 4,552.23.
“Lower-than-[expected]inflation numbers and improving sentiment overseas helped ease slowing-growth concerns, causing investors to take on risk,” Jonathan Ravelas, BDO chief market strategist, said in a text message.
Ravelas sees “market technicals still supporting a possible bounce-back toward 8,000 points and even a retest of the recent highs, provided that first-quarter earnings are good.”
The market was also influenced by some gains on the US markets overnight, said Justino Calaycay Jr. of Accord Capital Equities Corp.
Overnight, the Dow Jones Industrial Average climbed 46.34 points, while S&P 500 added 6.20 points and Nasdaq gained 11.54 points.
Calaycay said he sees the market anticipating the next raft of first-quarter corporate earnings results toward the peak of the reporting season.
Companies that have released positive first-quarter results since Monday were SM Prime Holdings Inc., Xurpas Inc., Century Pacific Food Inc., Philippine Long Distance Telephone Company (PLDT), Rizal Commercial Banking Corp., and Nickel Asia Corp., among others.
Sectoral indices all finished in positive territory, led by the property counter with a 1.74 percent gain.
All actively traded companies settled higher, including Universal Robina Corp., BDO Unibank Inc., SM Prime, Metropolitan Bank and Trust Company, Ayala Corp., GT Capital Holdings Inc., Alliance Global Group Inc., PLDT, Ayala Land Inc., and SM Invesments Corp.
Total volume of trade stood at 912.822 million shares, valued at P5.66 billion. Advancers outnumbered decliners 106 to 82, while 48 issues closed unchanged.