Amid overseas developments, Philippine shares pulled off a quick recovery after snapping out of its six-day run during the mid-week.
Abbygayle Estrella, ABCapital Securities Inc. equities analyst, said in a phone interview that the market was mostly higher due to the modest gain in US equities, which was backed up by the official nomination of Federal Reserve vice chair Janet Yellen to be the next head of the US central bank, as well as the anticipated dialogue of US President Barack Obama with the House Republican leaders.
“Exactly a week to the debt ceiling deadline, markets remain hopeful while on an uneasy footing. The overriding sentiment remains negative trumping all other influences even as hard-line positions seem to thaw. The announcement of Janet Yellen as successor to Ben Bernanke drew a silver lining to the narrative. This is the global picture,” Jun Calaycay, analyst at Accord Capital Equities Corp., said.
The Philippine Stock Exchange index (PSEi) on Thursday rebounded by 0.91 percent, or 58.22 points to 6,435.97, while the wider all-shares barometer went up by 0.90 percent, or 34.69 points to 3,892.06.
According to Estrella, Philippine shares are still poised to move upward or “sideways with positive bias.”
“PSEi can still have some gains unless others are still hesitant due to US worries,” she further said.
Also, all the sectoral indices registered gains, with property and holding firms climbing by more than one percent. Property gained 1.61 percent, or 40.29 points to 2,548.66, while holding firms climbed 1.17 percent, or 66.90 points to 5,787.82.
Industrial, on the other hand, increased by 0.68 percent, or 63.32 points to 9,351.75, while services went up by 0.48 percent, or 9.65 points to 2,008.80. Financials, and mining and oil were both positively flat.
Total value turnover stood at P8.2 billion toward the end of the session, with advancers edging decliners, 84 to 60.
Some of the most actively traded stocks were Philippine Long Distance Telephone Co., Ayala Corp., Universal Robina Corp., Megaworld Corp., Alliance Global Group Inc., Emperador Inc., Manila Electric Co. and Ayala Land Inc.
After six days on the green side, Philippine shares shied away from positive territory on Wednesday as the US debt ceiling deadline drew nearer.
The PSEi snap on Wednesday snapped out of its six-day upward trend by 1.19 percent, or 77.11 points to 6,377.75, while the wider all-shares index shed 0.80 percent, or 30.97 points to 3,857.37.