Philippine shares bounced back from a three-day losing streak and tracked Asian stocks in positive territory on Friday after the S&P 500 hit another record close.
Sentiment in the region was buoyed by strong economic data in the United States, which showed an increase in orders for durable goods in April and higher housing prices for March.
Astro del Castillo, managing director at brokerage firm First Grade Holdings Inc., regards the local gains as a technical market reaction to the rise in global markets, especially on Wall Street.
The benchmark Philippine Stock Exchange index (PSEi) regained 7.62 points, or 0.11 percent, to close at 6,787.88. The wider all shares index rose 10.36 points, or 0.26 percent, to 4,060.64.
Overnight on Wall Street, the Dow Jones industrial average firmed 0.42 percent, and the S&P 500 edged higher by 0.60 percent to a record 1,911.91.
“The [PH] market rebound, although weak, was amid positive news from the offshore markets, with the US performing well … The market is still in consolidation.
Tomorrow [Thursday] GDP (gross domestic product) [data]will be released and we should see a more decisive market,” DA Market Securities Inc. equity analyst Gab Aguila said in a text message to The Manila Times.
“The rebound showed buying pressure at the open that drove the market up to 6,808.43 before selling pressure set in and trimmed market gains to just 7.62 points,” Aguila said.
The market may consolidate further around the same level until the first-quarter GDP result is released, he added.
Except for property, which fell 1.25 points, or 0.05 percent, to 2,688.90, most of the other sectors posted slight gains.
Holding firms added 18.22 points, or 0.30 percent to 6,150.54, industrials rose 16.72 points, or 0.16 percent to 10,322.00. Services gained 3.14 points, or 0.15 percent, to 2,042.84 and financials edged up 1.92 points, or 0.12 percent, to 1,598.49. Mining and oils advanced 13.89 points, or 0.09 percent, to 15,722.99.
Volume of trade was little changed at 1.3 billion shares, valued at P7.2 billion. Advancers outnumbered decliners, 92 to 78, while 40 were unchanged.
Arthaland Corp. led gainers with a 21.85 percent jump to finish at P0.29, while 8990 Holdings, Inc. was up 13.60 percent at P7.85, Emperador Inc., up 0.51 percent at P11.90, Alliance Select Foods International Inc., up 3.45 percent at P1.50, and Philippine Seven Corp., up 4.92 percent at P96.00.
In a disclosure to the stock exchange, Arthaland said it was not aware of any factor that could have triggered the company’s share price surge.
“We are unaware of any information relating to the unusual price movement of ALCO’s [Arthaland] cornmon shares,” the real estate firm told the local bourse.
Meanwhile, an analyst said the spike in the share price of 8990 Holdings could have been driven by the company’s announcement it would add mall developments in its business portfolio.
The PSEi in its previous close Tuesday retreated 10.16 points, or 0.15 percent to 6,780.26, while the broader all shares shed 3.23 points, or 0.08 percent to 4,050.28.