Stocks break into 7,300 territory

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The Philippine Stock Exchange index (PSEi) followed regional leads on Monday, taking its cue from an interest rate cut in China and ignoring domestic earnings results.

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The benchmark stock exchange index gained 1.22 percent or 88.02 points to close at 7,324.40, while the broader All Shares index also rose by 1.02 percent or 42.51 points to hit 4,203.15.

Joylin F. Telagen, research analyst at IB Gimenez Securities Inc., said the market was boosted by “investors’ cheers after China’s surprise rate cut to boost their economy.”

She noted that some selling, however, followed the release of Manila Electric Co.’s (Meralco) January to September results, which saw the firm’s stocks losing 2.19 percent or P7 to end P313 per share.

Other than Meralco—which reported net income of P16.15 billion as of the end of the third quarter, up 13% from a year earlier—other companies that released nine-month results also recorded lower than expected profit.

BDO Unibank Inc.’s shares dropped as it posted relatively flat net income growth—up 5 percent to P17.6 billion from P16.7 billion— that was said to be lower than expected of a firm under the SM Group.

The Aboitizes’ Union Bank of the Philippines, meanwhile, saw a drop in net income— to P3.67 billion from P6 billion a year ago—on lower trading gains.

For this week, Telagen said a US Federal Reserve decision would be the next to move market sentiment.

“A delay in [a Fed]interest rate hike will move the market to retest 7,471 . . . better third quarter earnings should [also]support the index for it to move higher,” she said.

All sub-indices gained on Monday, with services and property sectors being the lead advancers at 2.47 percent and 1.80 percent, respectively.

Trading totaled 1.3 77 billion shares valued at P8.39 billion. Advancers outnumbered decliners, 116 to 70, while 32 were unchanged.

Last Friday, the bellwether PSEi 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.

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