With the Dow Jones setting up the positive mood on Tuesday’s trading, the Philippine benchmark stock index rallied once again on Wednesday driven by the improvements in the Syrian crisis and the economy of China.
Harry Liu, president of Summit Securities Inc., said that the improvement was from United States President Barrack Obama delaying a military strike in Syria, and Syrians agreeing to surrender their chemical weapons—as well as China’s economic improvement.
Liu also said that the market “will continue to go up” for the next few days and test the resistance level at 6,500 points, and will consolidate after between 5,950 and 6,500.
“Long term [toward the end of the year]is still looking up unless the market breaks the 5,500-point [mark],” he said.
Grace Cerdenia, analyst of online brokerage 2TradeAsia.com, said in an article on GMA News Online that aside from improved sentiments on Syria and China, market optimism is also influenced by the positive numbers of the country’s export and manufacturing that “boosted investor confidence.”
“For now, our market is also watching carefully the Zamboanga situation and [the condition]should not escalate to a bigger crisis,” Liu noted.
On Wednesday, the Philippine Stock Exchange index (PSEi) gained 125.18 points, or 2.06 percent to 6,214.90, while wider all-shares index added 53.86 points, or 1.45 percent to 3,774.39.
The sectoral indices went up as financials increased slightly by 1.17 percent, or 17.25 points to 1,487.49, and industrial perked up by 1.58 percent, or 148.51 points to 9,564.33.
Holding firms rose by 1.81 percent, or 97.52 points to 5,492.37, and services was boosted by 1.67 percent, or 32.30 points to 1,968.42.
Furthermore, mining and oil ascended by 0.83 percent, or 109.69 points to 13,357.91, while property inched up by 3.25 percent, or 73.79 points to 2,344.39.
The most actively traded shares were also positive, with only Alliance Global Group Inc. ending in read. The top 10 most active gainers include Philippine Long Distance Telephone Co., Ayala Land Inc., SM Investments Corp., Universal Robina Corp., SM Prime Holdings Inc., BDO Unibank Inc., Ayala Corp., Manila Electric Co. and Metropolitan Bank and Trust Co.
Advancers beat decliners, 94 to 47, while unchanged shares stood at 41 shares. Value turnover ended at P9.2 billion, and total volume traded was at 906 million shares.
On Tuesday, the PSEi rose by 1.54 percent, or 92.68 points to 6,089.72, while the broader all-shares barometer ascended by 1.28 percent, or 47.04 points to 3,720.53.