Stocks follow US gains


The local equities closed higher yesterday, up by close to one percent, following foreign markets’ appreciation of a favorable US Federal Reserve meeting.

Worries brought falling global oil prices remained a concern.

The Philippine Stock Exchange index (PSEi) gained 63.07 points to close at 7,029.28, while the All Shares also increased by 0.44 percent or 18.16 points to 4,150.56.

The market was up more than one percent in early trade but was pulled down by noon due to “overdone” selling due to weak oil prices.

The PSEi perked up towards the market close on US Fed Chairman Janet Yellen’s statement that the Fed won’t be raising interest rates anytime soon, boosting the buying in the US markets.

Overnight, the Dow Jones was up 288 points, while S&P 500 increased 40.15 points and Nasdaq loaded 96.48 points.

Luis Limlingan, Regina Capital Development Corp. managing director, said in a phone interview that the positives triumphed over the negatives as the market recess was only subjected to “overdone sell off” still on the falling oil prices that is affecting oil-centric economies.

He also said that the market is seen to likely trade in the 6,915 to 7,160 points range in the next four days of trading before the year ends, particularly today (December 19), December 22, 23 and 29.

“I would say more volatility towards yearend. So long as we don’t break the 6,915 level, we’ll likely to finish above 7,000. It will be attributable to the yearend window dressing,” Limlingan said.

Only Mining and Oil index lost among the sectoral indices, going down 0.78 percent or 119.26 points to 15,208.10.

Limlingan said the mining stocks were influenced by the decrease in the heavyweights including Nickel Asia Corp., Philex Mining Corp., and Atlas Consolidated Mining and Development Corp. which all declined. Oil stocks were also down on the slump in oil prices.

“The Mining and Oil index is dependent on few heavyweights notably Nickel Asia which has 24 percent weight in the subindex, as well as Semirara with 34 percent; Philex, 11 percent; and Atlas, roughly 8 percent which is an estimated three fourths of the Mining and Oil subindex,” he said.

Financials was up 0.75 percent or 12.20 points to 1,648.03; Industrial increased 0.51 percent or 59.34 points to 11,629.68; Holding Firms climbed 0.87 percent or 52.50 points to 6,110.44; Services jumped 0.52 percent or 10.67 points to 2,070.50; and Property gained 0.41 percent or 11.15 points to 2,743.47.

Most active stocks consist of two decliners—ALI and AGI—and eight gainers which include TEL, URC, BDO, AC, EDC, DMC, SM and MBT.

Traded shares totaled to 2.12 billion issues, valued at P10.91 billion. Decliners still outnumbered advancers—121 to 68—while 37 were unchanged.

On Wednesday, the main PSEi dived by 2.71 percent or 194.17 points to 6,966.21, while the All Shares index dropped by 2.25 percent or 95.22 points to 4,132.40.


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