By Madelaine B. Miraflor Reporter
Amid the absence of good news in the local front, Philippine stocks took cue on the rise of
Wall Street and pushed the index near the 7,400-point level in the middle of the trading week.
In a telephone interview, Freya Natividad, analyst at online brokerage 2TradeAsia.com, said that the ascent of Wall Street overnight helped the market maintained its back-to-back gains starting Tuesday.
She also said that investors chose to take directions overseas since there is a lack of market drivers locally as of the moment.
Jun Calaycay, Accord Capital Equities Corp. analyst, said that the factors pushing the market upwards include sustained bias toward easing and provision of or stand-by stimulus among the central banks of the major economies; the low interest rates and contained inflation; positive earning trends for listed firms; and a generally peaceful conduct of the midterm polls here at home.
“While the record setting pace has taken a respite, the sustained uptrend, with no impending or immediate signs of a reversal, will keep optimism high,” he added.
Natividad further said that the market is poised to have a positive finish for this week, but there could be supply pressures along the way as investors retest the 7,300-point level.
The Philippine Stock Exchange index went further up on Wednesday, rising 0.78 percent, or 57.49 points to 7,385.07, while the broader all-shares index gained 0.61 percent, or 27.46 points to end at 4,534.20.
All the sector indices also registered increases, with holding firms rising by 0.93 percent, or 61.46 points to 6,659.36, followed by industrial, which went up 0.85 percent, or 93.62 points to 11,073.21.
The property counter also climbed 0.73 percent, or 22.37 points to close at 3,070, while services improved by 15.52 points, or 0.73 percent toward 2,136.90. Mining and oil inched up by 0.39 percent, or 68.82 points to 17,522.41, while financials surged slightly by 2.27 points, or 0.12 percent to 1,893.83.
Advancers edged decliners, 93 to 70, while 48 shares were unchanged.
On Tuesday, the PSEi recovered from a three-day skid, regaining 0.72 percent, or 52.20 points to 7,327.58, while the wider all-shares index rebounded by 0.38 percent, or 16.90 points to 4,506.74.
“Philippine shares rallied with value turnover picking up even as breadth turned negative, slightly pushing the main gauge to close above the 7,300-line for the third time. Share prices across the region pulled mixed results,” Calaycay said.
“Future indexes across the three widely tracked US gauges are slightly negative and so are their peers across the Atlantic,” he added.